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Microsoft extends warranty period
Microsoft knows something is wrong with their Xbox 360 next-gen platform, especially after the rumours that popped up on the net over the past few weeks, so they've decided to extend the warranty period on this console up to three years.
The number of consoles that were returned to MS were not specified but were called "too large" nonetheless. It would cost MS about 1 billion dollars to patch things up, but they still have faith that their console division will become profitable on the long term. They've also found several factors that would cause the infamous red ring of death.
In other bad news for MS: they've also missed their shipping target of 12 million Xbox 360 consoles, instead they only reached a number of 11.6 million.
The number of consoles that were returned to MS were not specified but were called "too large" nonetheless. It would cost MS about 1 billion dollars to patch things up, but they still have faith that their console division will become profitable on the long term. They've also found several factors that would cause the infamous red ring of death.
Any Xbox 360 customer who experiences a general hardware failure indicated by three flashing red lights will now be covered by a three year warranty from date of purchase. All other existing Xbox 360 warranty policies remain in place.
As a result of what Microsoft views as an unacceptable number of repairs to Xbox 360 consoles, the company conducted extensive investigations into potential sources of general hardware failures. Having identified a number of factors which can cause general hardware failures indicated by three red flashing lights on the console, Microsoft has made improvements to the console and is enhancing its Xbox 360 warranty policy for existing and new customers.
Microsoft stands behind its products and is taking responsibility to repair or replace any Xbox 360 console that experiences the “three flashing red lights” error message within three years from time of purchase free of charge, including shipping costs. Microsoft will take a $1.05 billion to $1.15 billion pre-tax charge to earnings for the quarter ended June 30, 2007 for anticipated costs under its current and enhanced Xbox 360 policies.
As a result of what Microsoft views as an unacceptable number of repairs to Xbox 360 consoles, the company conducted extensive investigations into potential sources of general hardware failures. Having identified a number of factors which can cause general hardware failures indicated by three red flashing lights on the console, Microsoft has made improvements to the console and is enhancing its Xbox 360 warranty policy for existing and new customers.
Microsoft stands behind its products and is taking responsibility to repair or replace any Xbox 360 console that experiences the “three flashing red lights” error message within three years from time of purchase free of charge, including shipping costs. Microsoft will take a $1.05 billion to $1.15 billion pre-tax charge to earnings for the quarter ended June 30, 2007 for anticipated costs under its current and enhanced Xbox 360 policies.
In other bad news for MS: they've also missed their shipping target of 12 million Xbox 360 consoles, instead they only reached a number of 11.6 million.
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