Here's an interesting bit I gathered from the internet. Notice the date on the article. It seems that MS cut a corner here to make the ship date.
Please read on.
From the article:
Slow Chip Linked To Xbox 360 Shortages
A new GDDR3 memory chip from Infineon Technologies is cited as the primary reason for the Xbox 360 console's slow manufacturing process.
By Courtesy of Gamasutra
EE Times
Feb 15, 2006 09:39 AM
"A story published in in the San Jose Mercury News cites a new type of memory chip used in the Xbox 360 console as the primary reason for the consoles slow manufacturing process, which has led to continued worldwide shortages and had a knock-on effect for the profits of many publishers.
According to author Dean Takahashis unnamed sources, the chips are made by a German company named Infineon Technologies. Infineon has apparently had trouble manufacturing enough of the chips at the right speed, which has slowed the overall production process. In addition, an unusually high fault rate on the memory chips has exacerbated the situation.
Takahashis report claimed that Infineon has been unable to produce enough GDDR3 (graphics double data rate) memory chips, which are also supplied by Samsung. Some of the Infineon chips are reported to run slower than the 700 MHz necessary, and these have had to be weeded out of the manufacturing process.
Microsoft has never specified the problem, blaming only component shortages for the delays. "We have more than 200 suppliers, and I'm not going to point the finger at any one of them," game division head Peter Moore is quoted as saying. In a speech at the recent DICE Summit in Las Vegas, Moore suggested that the Xbox 360 shortages would be over within four to six weeks. "