Over the past few days, stories have been circling around the place that the failure rate for the 360 had been "nailed" at 16%. This figure was taken from SquareTrade, who claimed to have issued warranties for the console, and was based on a sample group of 1000 360s. Today, Microsoft have hit back at these claims, saying they've never heard of SquareTrade:
We have not seen the report, and are unfamiliar with the agency that filed it. Based on the enthusiast community's feedback yesterday, the methodology of this report is suspect.