Microsoft Says Xbox 360 Failures “Unacceptable”, Does The Right Thing

“Microsoft has made some announcements that point to problems with the Xbox division.First off, Microsoft acknowledged the Three Rings Of Death problem, calling it “unacceptable”, offering a hugely extended warranty for consoles with the fatal error. All new 360s have a one-year warranty, but 3-ring consoles receive a special 3-year warranty from date of purchase, complete with free shipping. The cost of this new program will be $1.05-1.15 billion for the previous quarter, a major hit to the stock and the bottom line.

Microsoft is doing a very good thing for its customers, finally acknowledging a problem and fixing it for three years, at a great cost to itself. The 360 shipped with a major manufacturing defect, and they are paying over a billion dollars to repair it. I’m thrilled that Microsoft is doing this, but saddened that the company has to take such a major blow. Thanks to this, the Xbox division is going to have a hard time making a profit in the forseeable future.

If you have had to pay to repair your console, ever, for ring of death errors, you will receive a full refund. What about customers like me, who did the smart thing and paid for an extended warranty? It looks like we’re screwed, but I will be calling Best Buy for a refund, and let you know how it goes.”

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