Microsoft Xbox 360 console has been one of the best selling gaming consoles of this generation.

However, it is also known to be the one with the highest defect rate. One of the major problems affecting the console is the Xbox 360 Red Ring of Death which requires a replacement in most cases.

The State of California has now filed a lawsuit against the software giant claiming that the company knowingly manufactured faulty Xbox 360 consoles and sold them in the market to get the time advantage against the rivals Sony and Nintendo.

As a result, they had a one year advantage over the other two consoles Nintendo Wii and Sony Playstation 3.

The lawsuit claims that the failure rate of the consoles at one time used to be around 50% which is much more than the industry norm 3%.