It hasn't even been a full month into the New Year and Microsoft are amidst new Xbox 360 rumours. Yesterday, Kotaku AU reported on a transcript sent to them that EB Games Australia were threatening to drop its entire Xbox 360 range. The reason claimed was that Microsoft were refusing to take back faulty consoles, leaving Australia's largest games retailer to deal with the problems in-house.

The transcript that Kotaku AU received stated that EB Games Australia currently had AUD$10 million worth of faulty Xbox 360s--which would equate to roughly 17,000 broken consoles.

EB Games Australia and New Zealand merchandising director Shane Stockwell has categorically denied the rumour, however. Stockwell told GameSpot AU that shortages of 360 units in EB Games stores around the country had "nothing to do with defective issues whatsoever". "We've just sold all of our stock," he said.

When GameSpot AU visited stores around the Sydney CBD area, none of the stores had any Xbox 360 Premiums in stock. They did have Xbox 360 Elites available, however. Staff told us that they were expecting stock to arrive in early February, and that the shortage was not unexpected due to the post Christmas Sales.