I've read reports of something being referred to as the "red-ring-of-death" bug in the XBOX 360 game onsole. Now, I dont own one of these, so I can't confirm it.
That's not a bug it's a feature

. Whenever the X360 breaks, it recognizes this and shows flashy red colored leds around the power button. Only M$ would add all that functionality in case it breaks, guess they weren't too confident about the hardware themselves. But the RROD is just a symptom of a deeper problem. Much like a BSOD is not the problem, just a symptom of a more screwed up winDOS
A friend of mine has had 3 Red Rings Of Doom so far. The newer X360's seem to be more reliable, though I can't say for sure. A funny thing about the X360 is that the year can only be set to 2025, so after that it's time bug for that machine as well. ( Remember 1999 when everybody was all "millennium bug this, millennium bug that"? Good times ).
Another "great" gift of Microsoft to their XBOX 360 users is the "New Xbox Experience". Basically, one day when I turned my machine on, it downloaded an update, installed it and rebooted, After that, I had to create a very childish Avatar before I could play anything. These avatars are simply the most annoying things ever to set foot on my gaming console. There's quite a limited amount of stuff you can do with them. The fattest avatar you can make doesn't look much more than slightly chubby, the smallest looks pretty much like a stick figure. And when I had finally created a somewhat menacing looking character, it decided to show a big smile and wave. Not what I'd let my avatar do if I had a choice. The "New XBOX experience" cannot be uninstalled, and you can't choose to use the old one.
Sometimes I wonder if Microsoft are really evil or really stupid, and I still haven't found an answer.