It’s the kind of business story that tests the boundaries of customer loyalty and can explode into a marketing nightmare, destroying a brand. Consumers have complained that the X-box 360 scratched and damaged discs, in certain situations, so legal action followed. Now, released documents seem to indicate that Microsoft actually knew of the problem prior to the launch of X-box and refused to fix it. It’s not a good day to be part of the Microsoft PR department.
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