Anothe
r big problem for Microsoft according to insiders is getting the heat and noise output from the current Xbox 360 under control so that the new device can run silently while a movie is being played. It is known that Toshiba has been working with Microsoft on this issue as it has extensive experience in notebooks and "quiet" drives. Currently most iPods incorporate a Toshiba drive.
Another benefit for Microsoft in moving to a new Xbox platform is that it can introduce new components that are less likely to fail. Currently the PS3 has a failure rate of under two percent. Recently Microsoft was forced to allow for a $1.3 billion charge against warranty claims following reports of up to a 30 percent failure rate of the original Xbox 360.
The new device is expected to be released late in 2008 or at the 2009 CES show in Las Vegas.