Microsoft executives will be a little red-faced today after an Xbox 360 on display at this year’s Game Developers Conference (GDC) in San Francisco contracted the infamous ‘Red Ring of Death’ disease.

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The console was set-up as a demo unit in an area dedicated to Microsoft's XNA, a software toolkit for videogame development. A video of the problematic but publicly placed console, filmed by a BBC commentator at GDC, has already appeared online.

The video will make uncomfortable viewing for Microsoft bosses because the hardware headache has already cost the company more than $1bn (£500m/€650m).

Last week, electronics warranty trading firm SquareTrade concluded that an Xbox 360 has a 16.4 per cent chance of breaking down and that, of those that do, the Red Ring of Death will be at fault in 60 per cent of cases. It based its findings on a study of 1000 warranty claims for the console.

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