Microsoft needs to stick to what Microsoft makes money at, software. They pulled it off with the Xbox 360 mostly due to beating everyone else to market with the next gen console, but just about everything else they touch turns to dirt. I'm on my second 360 because, you guessed it, the first one burned up... right at the 1 year mark. I would go PS3 if more games were available for it, and it didn't cost so damn much for something I rarely play.
I digress.
Microsoft sucks at hardware, they always have and always will.