My radio is possessed, the screen went out and it keeps spinning through cd's by itself, goes on and off with blistering volume. Makes beeping noises etc. weird stuff. Do these things go bad? I have never had a radio go bad before. I have the silver color STI radio with 6 disc changer and no tape deck on my bugeye, anybody have their old working unit and want to sell it?
Any piece of electronic equipment can, of course, go bad. My wagon came with an aftermarket radio (shittier than stock though...a true piece of trash) so I have no first hand experience with stock Subie radios. However, with yours having the built in disk changer and all the other functions, you may want to check all the wiring before just putting in another unit. It may cause the radio to do all sorts of crazy things if the wiring is loose or fractured in places.
Yes they can go bad....sounds like your radio might of gone south. I would suggest just getting a single din size and a pocket to replace it with. You can get a good radio for under $200 installed that will be way more advanced than your stocker.