SmartHouse's David Richards claims that Xbox Australia director David McLean (pictured) is attempting to gag SmartHouse that earlier this year exposed a 30-percent failure rate of the Xbox 360. Only weeks after SmartHouse exposed the story, Microsoft made a $1.3 billion dollar allowance for defective Xbox 360's.
As previously noted in a disclaimer for the rumor of "Toshiba Working with Microsoft on New Entertainment Xbox", some sources reported that Richards may have some credibility issue. Please see Alternative Sources. (Which means you should read his claims with a fair degree of skepticism.)
The source article requires (free) registration. The full article is reposted in GameTrailers.com forums. See alternative sources below, i.e., the third link.