Microsoft Expands Xbox 360 Warranty: 3 years - Costs MS 1bln USD Options

[Xbox-Scene]

Microsoft Expands Xbox 360 Warranty: 3 years - Costs MS 1bln USD Posted by XanTium | July 5 16:59 EST | News Category: Xbox360

From the press release: [QUOTE] 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. [/QUOTE] And here's the open letter written by Peter Moore: [QUOTE] To our Xbox Community: You've spoken, and we've heard you. Good service and a good customer experience are areas of the business that we care deeply about. And frankly, we've not been doing a good enough job. Some of you have expressed frustration with the customer experiences you have had with Xbox 360; frustration with having to return your console for service after receiving the general hardware error message on the console. The majority of customers who own Xbox 360 consoles have had a terrific experience from their first day, and continue to, day in and day out. But when anyone questions the reliability of our product, or our commitment to our customers, it's something I take very seriously. We have been following this issue closely, and with on-going testing have identified several factors that can cause a general hardware failure indicated by three flashing red lights on the console. To address this issue, and as part of our ongoing work, we have already made certain improvements to the console. We are also implementing some important policy changes intended to keep you in the game, worry-free. As of today, all Xbox 360 consoles are covered by an enhanced warranty program to address specifically the general hardware failures indicated by the three flashing red lights on the console. This applies to new and previously-sold consoles. While we will still have a general one year console warranty (two years in some countries), we are announcing today a three-year warranty that covers any console that displays a three flashing red lights error message. If a customer has an issue indicated by the three flashing red lights, Microsoft will repair the console free of charge--including shipping--for three years from the console's purchase date. We will also retroactively reimburse any of you who paid for repairs related to problems indicated by this error message in the past. In doing so, Microsoft stands behind its products and takes responsibility to ensure that every Xbox 360 console owner continues to have a fantastic gaming experience. If we have let any of you down in the experience you have had with your Xbox 360, we sincerely apologize. We are taking responsibility and are making these changes to ensure that every Xbox 360 owner continues to have a great experience. This will take a few days to roll out globally, and I appreciate your continued patience as we launch this program. I've posted an FAQ that should address some additional questions, and we'll update it over the next few days. I want to thank you, on behalf of all us at Microsoft, for your loyalty. [/QUOTE]

[HSDEMONZ]

WOW.

Not much more I can say.. other than. .it's about fucking time.

[Theta]

Very nice - quite a few of us getting money back, as well!

[sinister slipknot]

Sweet! Definently good news, apart from those of us whos 360 broke down out of warrenty and did the xclamp replacement...

[sabbath_dude]

Thats excellent news!, nice one M$! . Just wish I hadn't spent my time and money fixing a security sealed 3rlod box off ebay yesterday and today, ah well.

So this means my personal 360 pretty much just got an extra 2 year warranty added to it for free? , nice!. Just wait for the people who bought in store extended warranty plans to start moaning though .

[kensterdotnet]

Thats excellent news!, nice one M$! . Just wish I hadn't spent my time and money fixing a security sealed 3rlod box off ebay yesterday and today, ah well.

So this means my personal 360 pretty much just got an extra 2 year warranty added to it for free? , nice!. Just wait for the people who bought in store extended warranty plans to start moaning though .

That's me heh. I now have a 5 year warranty.

[mrhammerstein]

so should i assume this means all new purchases? i'm weeks away from getting one and this sure would solidify my purchase.

[focusedsoul]

Ah...shit...to think I voided my warrenty just 2 days ago by opening the console, painting it and installing whisper fans.

I hope to god it does NOT die on me!

[TheIrishLad]

Just wait for the people who bought in store extended warranty plans to start moaning though .

It is only a matter of time

[BoNg420]

Its nice they will reimburse the poor owners who got taken for $100 something to get their system fixed. Seems all this bad press recently has kicked MS in the ass and made them head the right way. Next we should expect a stable system, without worries of 3ROL.

[epsilon72]

It's ABOUT TIME.

I wonder if Sony or Nintendo will decide to counter with a similar move, even though their products are (so far) far more reliable?

This post has been edited by epsilon72: Jul 5 2007, 09:44 PM

[STICKY_BUD]

i will positively buy an elite as soon as the price drops now!! i was going to wait for 65nm, but i do not care about that now...











WOW!!

[Xiion]

i think microsoft is a bit too late on this solution :/

people have been reporting their xboxs being bricked for quite some time now, and now that its getting worse, it's a good thing that microsoft is finally stepping in to help out, but they could have done with this a few months ago. it'll be good to have the extended warranty if Microsoft plans on more updates for the console in the near future that could brick more xbox consoles. but as for now, good job Microsoft.

[Mr Invader]

This is excellent, MS is probably hoping that 360s will last longer once the 65nm processors come out.

[JayDee]

The three years of warranty is nice, but with the history so far i wouldn´t buy a tv, or any other electronics device, that have a track record similar to the 360´s without that safety net.

/me is off to pack and wrap one rrod baby thats been sitting in a closet the last two or three months,without warranty untill now, and call ms first thing in the morning.