This is slightly old.
http://pcworld.about.com/news/Dec062005id123844.htm
Customer Claims Xbox 360 Defective
Microsoft denies widespread glitches alleged in class-action complaint.
Elizabeth Montalbano, IDG News Service
A Chicago man has filed a class action complaint against Microsoft claiming the company knowingly distributed defective Xbox game consoles in its hurry to beat rivals to market with a next-generation gaming product.
A complaint filed in a U.S. District Court in Illinois by Robert E. Byers alleges that Microsoft designed a power supply and a CPU into the Xbox 360 that run too hot and overheat, causing the console to freeze or lock up when being operated. The design defect is "material" because "it renders the Xbox 360 game consoles completely inoperable," according to court documents filed December 2.
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