-The disc tray and such probably doesn't get tested.
It would take simply too much time(and money) to do this for every single console.
Absolutely the disc tray would be tested. You even see a picture of the test disc above.
Let me explain it again.
The contract manufacturer (CM) buys the parts and builds units. The customer (MS) purchases every one that is built properly from the CM and then puts that in the retail channel to sell it to a retailer. The difference between the contracted purchase price and the wholesale price is the gross profit for MS, regardless of how much it costs to make a unit. In essence, if there is a mismatch between the price to make a unit and the contracted purchase price, then the CM takes that profit/loss.
Now, look at it from the CM's side. Would you like to sell non-working units to MS? Sure you would. If you could ship empty enclosures and get paid $550 (or whatever) by MS for the, you would make a huge profit. But if you're MS, would you like to buy non-working units from the CM? No, you wouldn't, because you don't want to deliver non-working units to the retailers.
So the compromise is that there is a defined test which every unit must pass before it is declared to be a working unit. MS wants this test to be as comprehensive as possible because the customer doesn't want to buy units that don't actually work. The CM wants it to be less comprehensive because every unit that fails the test is one they cannot sell to MS. They have to either repair it (rework) or if it cannot be made to work, take out the valuable or easy-to-remove parts (CPU or any subassembly like the HDD, ODD, controller, power supply, etc.) and use those to make a new, working unit.
In addition, the CM would like to spend less money testing. But then again, there is a reason they build in China! Labor is still cheap (for now) and space isn't very expensive either. So if you have to take a unit and put it on a rack for an hour or two to run automated tests, then that can be done if necessary. And for something this complicated it's probably necessary. You can be sure each function of the unit is tested at least in a cursory manner. Every port is plugged into, every button pressed. The optical drive reads a disk, the harddrive reads and writes.
But there is yet another factor at work. Remember, the CM gets paid for each unit that passes those tests. What if bad units can be made to pass those tests even though they are bad units? The CM gets paid for them and is happy. So that's what happens. One of the way CMs apply their skills of cost-efficiency is by figuring out how to cheat the tests. This is especially true when MS is asking for a high production rate, as at launch.
So, as I said, each unit is supposed to be tested. Is it really tested? We can't be sure. And MS can't either. If MS knew the tests were being cheated they would change the tests so they cannot be cheated in that way.
Of course, it's also possible the units don't exhibit any problems during the tests and just show them later. We saw this with the RRoD. In that case, the act of shipping the units broke the solder joints and so they were bad upon receipt even though they passed the tests.
There's a lot of possibilities. But be sure that at least according to the contract between the CM (Foxconn, presumably) and MS, each unit is tested before ship.
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