Microsoft Admits Hardware Issue, Extends 360 Warranty
Includes retroactive reimbursement for previous machines.
By Patrick Klepek, 07/05/2007
Microsoft announced today they are extending all Xbox 360 warranties to three years, a policy that not only applies to new consoles but retroactively, as well. If you've had to pay for Microsoft to repair the red ring issue in the past, they will pay you back. At 2:30 p.m. PST, Microsoft will hold a teleconference to announce this.
"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," said the company in a statement. "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."
This comes just after 1UP's own story about a man who's gone through 12 different machines since purchasing an Xbox 360 near launch, reports overseas of companies refusing to repair the hardware because the load is so overwhelming and responses from the Forza Motorsport 2 team about users experiencing hardware failures while trying to play that game.
"The majority of Xbox 360 owners are having a great experience with their console and have from day one. But, this problem has caused frustration for some of our customers and for that, we sincerely apologize," said Robbie Bach, president of Microsoft's Entertainment & Devices Division. "We value our community tremendously and look at this as an investment in our customer base. We look forward to great things to come."
Microsoft says they'll be taking 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."
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