Friday, July 6, 2007

Microsoft To Spend 1 Billion To Fix Xbox 360's


As posted yesterday, Software giant Microsoft announced that they would extend the warranty on all Xbox 360s to 3 years. After Microsoft completed an extensive investigation and determined that it was an unacceptable level of repairs. They were able to identify several flaws that caused the system to brick, giving the user the dreaded 'Red Ring of Death'.

Microsoft said it would take a $1.05 billion to $1.15 billion hit to extend the warranties, and fix the units free of charge.

WOW!!!

Ultimately this is a good thing for the users, who Microsoft needs to keep happy. Keeping a loyal fan base in the console industry is critical. Just ask Sony.

Hit the jump for the entire article. [Business Week via Crunchgear]

2 comments:

Docbeat said...

Now Microsoft is putting their SSS where their mouth is!!!!For the past 6 Months I must have read over a 100 Dreaded Ring of Death stories,that ended with the customer not happy.This move WILL win them this war over Sony!

Anonymous said...

Agreed Doc; and we all know that Microsoft (being the eldest of the next gen systems) will most probably be the company to start cutting their prices first.

This will be when I get on board! YEA!!!!!