I've enjoyed the 360 I lucked into back before Christmas, but clearly they were not ready to ship this thing. There are bugs galore in the games and the operating system. Every game has an unfinished feel to it with missing features and strange design decisions that seem like they would have been caught with ample testing.
To top it off, Microsoft killed the first Xbox off at the same time.
They should have looked at the software, the hardware and the fact that production yields were poor and just bitten the bullet and called it off. The problem is they didn't bother to keep any development on the original Xbox for the Christmas season so they had nothing to fall back on and had to launch 360 no matter what. They were so committed to the new box that they couldn't see the problems right in front of their faces. Either that, or they simply chose to ignore them.
This whole thing has gone from "First mover advantage" to "Big black eye" over the course of the last two months. Then they add to the confusion with HD-DVD announcement. Ay yi yi...