Microsoft to Spend $1 Billion to Fix Defective Xbox 360s


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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."

http://www.1up.com/do/newsStory?cId=3160812

so i guess they finally admitted that there's a problem. about time :)

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http://www.1up.com/do/newsStory?cId=3160812

so i guess they finally admitted that there's a problem. about time :)

Amazing news. Literally.

Now I wonder if this means that my extended warranty that I paid for will be extended even longer like when they made the last extension of a year?

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What a coincidence. On another forum I stated the need for a 3 year warranty as standard because of these issues. This is seriously good news - MS don't seem to mind giving out replacement consoles so it's not going to affect them too badly :p

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Excellent news, does this apply to US only ? I hope not..

Heh I wondered why MN had a show out mid-week, guess that's why

Interview with Peter Moore on 3 year warranty here

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this thing is going to cost MS a boatload of money (which they have lots of), but a price drop will probably be less likely now. read the bolded part to see how much it will cost em.

Microsoft Expands Xbox 360 Warranty Coverage

Microsoft Corp. today announced that it will expand its global Xbox 360 warranty coverage. 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.

"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."

For any customer who has previously paid for repair expenses related to the three flashing lights error message on the Xbox 360 console, Microsoft will retroactively reimburse them.

http://www.gaming-age.com/news/2007/7/5-14

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Kind of strange how they've only changed the warranty to 3 years if your console displays the 3 red lights (a general hardware failure), as this problem can sometimes only cause consoles to do things like freeze up, or display no/corrupted graphics, rather than the 3RROD.

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Amazing news. Literally.

Now I wonder if this means that my extended warranty that I paid for will be extended even longer like when they made the last extension of a year?

it better :p

awesome news

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Yet another prime example of a company that firmly stands behind their product and care for customer satisfaction. Kudos! :D

Amazing news. Literally.

Now I wonder if this means that my extended warranty that I paid for will be extended even longer like when they made the last extension of a year?

Most likely, yes. Your extended warranty will extend the warranty that the console 'comes' with. Now, the console 'comes' with the 3 years, so your warranty should append on to that. You should call them up and confirm, however.

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brilliant news... mine was gonna expire this xmas- and was thinking of getting an extended warrantty- but now no need to worry for 3 years.!!! :D im well chuffed with MS change of heart.. :p

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So.... this is a half-assed upgrade in my opinion. My 360 overheats consistently and freezes up on numerous games and now as I understand the warranty unless I get those 3 Ring of Death - they won't take it back for repair?

L A M E !

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brilliant news... mine was gonna expire this xmas- and was thinking of getting an extended warrantty- but now no need to worry for 3 years.!!! :D im well chuffed with MS change of heart.. :p

Actually you have peace of mind for another year and a half :p

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Wow this is amazing news. I've had my console for almost a year now and I've been afraid of using it too much.

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ZOMG WTF. I wish this would have happened before I bought a new 360 but this is great news indeed. :)

Well now your new 360 just got an additional 2 years of warranty coverage. (Y) :D

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Finally..... I can sleep at night for the next year :D.

ZOMG WTF. I wish this would have happened before I bought a new 360 but this is great news indeed. smile.gif

turn the broken one in and sell it... or better yet turn it in keep the replacement and return the new one.

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Damn now I have 5yrs of worry free gaming LMAO!!! Almost long enough for the next console launch :)

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Yes, finally i've been hoping for this for a while now that they did this my 4th one will probably die as the last time they extended it my 2nd one died only 3 days after.

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This is great because my 2nd Xbox has been locking up alot lately and am way out of the 1 year warranty so definately pleased about this :D New heat sink here I come

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