General Hardware Failure

This Microsoft-ism is almost as meaningless as "General Protection Fault".
Something in the Xbox 360 fails, it is not software - Microsoft says, wailing about a Billion US Dollar plus cost to fix the mess.

When I was researching gaming consoles I kept on coming across stories of Xbox 360 hardware failure - not from rabid complainers either, but from people who really like the console. I only read one posting by someone, who after about their third or fourth replacement console failed said "That’s it, I’m getting a PlayStation 3".

The Xbox 360 also has a bad reputation for chewing up game discs. A sticker on the Disc drive of the Xbox 360 warns "Do not move console with disc in tray" in English, French and Spanish. The Xbox 360 can supposedly be placed either upright or laying on its side. Of course most pictures show it upright - it actually looks better that way. But that is not the position recommended by those in the know. They say it is best positioned on its side. The reason - the game discs are more likely to be damaged when inserted with the disc tray in a vertical position. There is even an "Xbox Disc Replacement Program"
With the price of newly released Xbox 360 games at $60, and the much-hyped Halo 3 going for at $70 on pre-order, I’d be pretty upset to have the console chew up a new game disc. Unfortunately, this plan only appears to cover some of Microsoft's own games.

So far, I'm quite happy with my Xbox 360.