I'm guessing that 'Space Cadet Pinball' from Windows 95 doesn't count as purely as software product.....

Disclaimer, I proudly work for Microsoft as a developer specialist(I help companies in the bay area with development and application lifecycle management). The opinions I express are my own. I'd say from a hardware perspective, we've mostly knocked it out of the park with keyboards, mice, and assorted accessories.

There were obviously some missteps with xbox 360 first gen hardware. The company took a huge hit to extend coverage for the RROD for them. I believe we've done a fairly good job of owning up to it. Heck my Wii doesn't want to read discs half the time these days. That being said, I went out and threw done some cash for the limited edition Star Wars 360. I think the redesign was very solid and went beyond 'error lights'

If you're having issues with yours, then I'm truly sorry.

I think we're going to see some great things when the new surface ships out in October.

I totally feel ya pzy! I'm waiting just as anxiously. I thought I had some scoop on the inside track, but it was not to be. I seriously need to make some friends in the xbox division! With the launch of Visual Studio 2012 coming up, I'm not going to have much time in the near future though.