Inside sources tell me it is a programmed-on-purpose "flaw" in a number of systems released since August to give this story credibility and to make it this years Furby/Cabbage Patch Kid/Beanie Baby/Tickle Me Elmo, as n8littlefield mentioned. MS didn't want to sound like Sony on the PS2 launch (pffft, nobody believed THEM, that's for sure), so they made their story credible. It is fixable through a simple firmware update they don't want you to know about.
Yeah, I'm full of shit AND conspiracy theories.
Note: The above story was not relayed to me by anybody and is intended to be humorous and satirical. Rob Budrick does not take any responsibility for his actions, and neither should you, asswipe. That said, I still say my theory is true, BWA HA HA!
God, please don't sue me, MS.
-Rob