"Microsoft wants consumers to believe that its problems with the Xbox 360 console in terms of hardware failure are over. But wandering through the Game Developers Conference halls and it's clear that the problem persists. On Microsoft's own stand at the show one of the demo consoles has a rather familiar problem - the red ring of death. There's no way of knowing if this particular console was manufactured before or after Microsoft identified the problems with the machines."
Well, thats quite embarrassing. Everyone knows it happens but at one of the biggest gaming events of the year? Ouch.