Well, I never ended up sending my Xbox360 in because the problem is now happening with my brother’s xbox also. So, I just assume that the problem has to do with an incompatibility with how my TV handles 1080i. Crazy since my native resolution is supposed to be 1080i on the thing.
A coworker of mine, howver, has had a major hardware problem. That is when we discovered that the manufacturer’s warranty is only for a period of 90 days. Even the original Xbox had a warranty of 1 year. His problem appears to be related to the audio/video cards. It cost him $130 to have it fixed. You can read his post here.
He goes on to state that in 5 years time, an xbox 360 is way more expensive to match the features for a PS3. My only argument is not everyone wants everything the PS3 has. They may not need it. My other argument is that I don’t believe for an instant that their online matchmaking / game playing will be free. If it is, I am sure that other consoles will follow suit.