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Buyers of the Xbox 360 Elite video game console have discovered that the machine 'permanently freezes' due to suffering from the 'red ring of death'.
According to The Mirror, hundreds of angry owners are "sending back their £290 consoles, which are being shipped to Germany for repair".
One disgruntled buyer from Goms Hall, Surrey said: "I got my Xbox in September and it packed up eight months later in June. First, it kept freezing, then it developed the red ring of death."
The report, which claimed that machines with the problem will see a ring of green lights on the power control button turn to red, said Microsoft has now set aside £500 million for repairs.
Responding to the allegation, a Microsoft spokesman said: "The majority of Xbox 360 owners enjoy a great experience with their console. Anyone with a problem should call Xbox customer service."
In recent years, Microsoft has suffered from a number of quality control issues with its products. In 2007 it recalled 230,000 Xbox steering wheels due to overheating.
The firm also spent £500 million recalling power leads manufactured before 2003 after 300 caught fire.
