Videogame industry publication GamesIndustry writes in its weekly newsletter that Microsoft must address its hardware reliability and customer service or "risk handing the goodwill of the market back to its rivals." The highly critical look at the Xbox 360's hardware track record pulls no punches and paints a grim picture for the company looking to expand beyond the market it built for itself with the original Xbox.

GI writes that in addition for increased focus on fostering software geared for the mass market, hardware issues must be resolved if they're to unseat the PlayStation brand.

This problem hasn't gone away; in fact, from a consumer point of view, Microsoft appears to have done precisely nothing to address it. While the attention of the media may have turned to scrutiny of Sony's failings, the vast numbers of Xbox 360 owners who have been let down first by Microsoft's shoddy manufacturing, and subsequently by the company's arrogant and unfair policies with regard to customer service, have increased. Their voices are contributing to a groundswell of unrest and negative buzz which will hurt Microsoft very badly indeed if it is not addressed.

Certainly, Peter Moore's recent response to hardware related problems isn't helping with that goodwill. The Kotaku readership didn't seem to take kindly with his explanation of "things break." However, I've been under the impression that customer service has been improving, at least in North America, but I have yet to deal with them. Michael McWhertor

Rings of Red [Games Industry Weekly Newsletter]