Microsoft has a problem.

I'm not talking about the fact that very few people actually seem excited about their 13 different varieties of Windows Vista. No, I'm talking about the Xbox 360, a product that has become a favorite among the geek set thanks to its fantastic graphics, solid game selection, and excellent online service. The Xbox 360 has earned an enviable lead over its chief rival, the Sony PlayStation 3; and in an often hard-to-impress industry, it has clearly established itself as a success.

So what's the problem? Well, the Xbox 360 hardware seems prone to breaking down. Worse, the customer service designed to help owners when their hardware goes belly-up seems to be breaking down, too.

Now, I'd heard some grumbling about Xbox 360 hardware issues and customer service problems for some time. To be honest, I presumed it was the proverbial "small but vocal crowd." Let's face it--very few people go online to write about their positive customer service experiences.

But you don't have to look very hard to find large numbers of Xbox 360 owners complaining, in great detail, about their hardware and support issues. For a few examples, check out ConsumerAffairs.com or even the Xbox 360's own forums. (I've read, for example, that the game DeadRising has caused problems for a number of Xbox 360s.)

I recently talked to Wes Nihei, editor of GamePro magazine, to find out what industry insiders were hearing about the situation. He said he too felt that a larger-than-average number of people were experiencing hardware issues, particularly with regard to the consoles Microsoft shipped at launch. He noted, however, that he had no hard numbers on the problem, just the feeling. He also mentioned that he was preparing to send back his own dead Xbox 360 for service.

All the signs of a growing problem were there. But it wasn't until I watched a friend get caught in the gears of Microsoft's customer service machine that I started to wonder about the true extent of this issue.

Best. Customer. Ever.

My friend Diana is pretty much the customer Microsoft's Xbox 360 team should spend nights dreaming about. A fan of the original Xbox, she owns dozens of games for that console. She preordered the Xbox 360, but was among those who had to wait due to initial shortages in November 2005. When she got her hands on a unit in January 2006 she immediately bought additional controllers--for a total of four--because she enjoys having people over to play on her big-screen television. She's pretty much a living advertisement for the console, and a damn nice person to boot.

She's also extremely patient. So when her Xbox stopped working the first time--she experienced the dreaded "red ring of death" (when the normally green lights around the power button turn red)--she calmly called customer support. They diagnosed the problem as a dead hard drive and quickly shipped out a refurbished hard drive, and she sent in the bad one. She was slightly irritated at being stuck with a refurbished drive, but overall the experience was a good one, and she went back to merrily gaming.

That lasted for about two months, and then in August she ran into the same issue with her hardware. This time, Microsoft diagnosed the problem as a faulty console. Again, customer service was on the ball: They quickly shipped a replacement system, with instructions to return the faulty one in the same box. Soon she resumed her Xbox 360 love affair.

But in November she experienced the same hardware problem for a third time. An old hand at customer service, she assumed she'd be gaming again in a week or two. This time, however, Microsoft said she would have to ship them her unit, which they would repair and ship back. Undaunted, she shipped the console to Microsoft on November 21, 2006.