The X-files: Microsoft plans $1 billion charge for Xbox 360 fixes

Posted Jul 5th 2007 6:05PM by Julie Tilsner
Filed under: Bad News, Products and Services, Consumer Experience, Internet, Microsoft (MSFT), Scandals

Microsoft Corp. (NASDAQ: MSFT) today announced it was planning to take a more than $1 billion charge to expand a warranty program for its troubled Xbox 360 video game console.

The company said it was expanding its warranty coverage to three years, because of what it views as "an unacceptable number of repairs" to its Xbox 360 consoles.

Whoops. This admittance will cost the company a bundle. The company says it will record a pretax charge of between $1.05 billion and $1.15 billion in its most recent quarter (ended June 30).

Microsoft said it would replace or repair any machine suffering from a general hardware failure indicated by three flashing red lights. That would include free shipping, too, amazingly enough. However, the extended warranty will only apply to this particular hardware failure. Units with other issues will continue to carry the standard one-year warranty, according to the company. Units thrown through living room windows are not covered.

This Xbox FAQ has more information.

Tags: MSFT, X-box, X-Box 360, X-box360

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Reader Comments (Page 1 of 1)

7-05-2007 @ 7:34PM

Eddie said...

Bull . I had to pay 150.00 for the defective repair. In advance and shipping. It sucks!!! I got a WII. I love it.

7-05-2007 @ 10:21PM

toms said...

I've had it freeze a bit but nothing like they are talking about. I will have it checked. But the graphics on XBox are so vastly superior to anything else that it's worth having.

7-06-2007 @ 7:16AM

Zexerous said...

VVV Are you some kind of idiot? They're going to reimburse you for that money if you had the 3 rings of death. Great you got a Wii, I've got one too and I love it too. But good lord, think before you hit that post button. Hurf Durf.