Asian Manufacturers About RRoD: Microsoft is too Cheap Options

[Xbox-Scene]

Asian Manufacturers About RRoD: Microsoft is too Cheap Posted by XanTium | July 7 23:37 EST | News Category: Xbox360

From smarthouse.com.au: [QUOTE] Robbie Bach, president of Microsoft's entertainment and devices division, declined in an interview to say what specifically caused the failures or how high the failure rate has been, but Asian manufacturers of the Xbox 360 who have been pressured by Microsoft to lower costs by as much as 15% say that the problem is caused by poor Microsoft design and the Company buying low cost components in an effort to beat Sony. Recently Microsoft adopted various strategies to be more cost competitive with its Xbox 360 game consoles, with moves including asking for a price reduction from Taiwan-based component makers and working with Lite-On IT for its add-on HD-DVD drive, according to sources in Taiwan. One Asian manufacturer that SmartHouse spoke to on Friday said "Microsoft have known of this problem for a long time. They are trying to blame component manufacturers but it was a combination of bad design and them (Microsoft) wanting everything cheap. This is what caused the problem along with them wanting to beat Sony to market. A lot of manufacturers were pushed to deliver components without much testing of the components working together inside the console". [/QUOTE] Full Story: smarthouse.com.au (5 pages)

[sgr215]

This doesn't surprise me at all. It's funny, the richer you get the cheaper you you are.

[nitussi]

I beleive the Asian manufactures.....


I hope who was in charge of the manufacturing process at M$ gets the boot!

[Wilhelmm]

Funny readning this news and in my rght side a 3rdl 360 ... thanks MS!

[BrothaJay]

This is unacceptable, 2007 and a multi-billion dollar company cuts corners to get to market before the competition and what does it get them. RRoD
Not only do they cut corners but they know of a problem and do NOTHING TO FIX IT! Too little too late.

[m_hael]

This is unacceptable, 2007 and a multi-billion dollar company cuts corners to get to market before the competition and what does it get them. RRoD
Not only do they cut corners but they know of a problem and do NOTHING TO FIX IT! Too little too late.

welcome to standard business practice.

[epsilon72]

Yeah, we pretty much assumed this much already...

[GamerBR]

Isn't trying to cut expenses like that more likely to make microsoft lose money than getting more money?I mean they already said that the warranty extension to 1 to 3 years are going to cost 1 bilion,what about the extension from 3 months to 1 year?And I didn't even mentioned the amount of money they are likely to lose by people and governments suing them.

[pablo0024]

that Asian manufacturer really has balls to say the truth.

And microsoft should be sued, too many lies, the design has too many flaws. They did it to get it out faster than the ps3, now look what they did, and they didnt really care about the real issue (hey! extended warranty! we will change your broken 360 once, twice, still broke? we will send you another box and who knows...maybe some day you wont play anymore and you wont find out that its broken...)

This post has been edited by pablo0024: Jul 8 2007, 05:21 AM

[epsilon72]

Isn't trying to cut expenses like that more likely to make microsoft lose money than getting more money?I mean they already said that the warranty extension to 1 to 3 years are going to cost 1 bilion,what about the extension from 3 months to 1 year?And I didn't even mentioned the amount of money they are likely to lose by people and governments suing them.

In my experience, businesses don't always think of the long term costs of their actions. If they can get money now rather than wait for it, they will want it then and not later, despite what bad consequences might come of it.

[m_hael]

its all about the stock price...

[DMAddict]

*wondering how big this snowball is gonna get.

[FCTE]

Yes, it's always good to reduce cost to maximize profit, but there is a balance where saving cost now in manufacturing doesn't equal the RMA costs in the long run. Their competition (Sony) is in shambles and priced out of the market anyway so why are they still milking the 360 profits with extremely cheap parts? They are going into the black with the Halo 3 release and with all the other A titles coming out this fall they will start to turn a good profit finally anyway.

With all these A titles coming out, a possible price drop, and Christmas coming back around again they'd better fix the issues by redeveloping the innards of the box soon. Yes, free repairs are nice, but you also have to take into account that most gamers are not happy about being without their console for 2 weeks, free repair or not.

[Lordscr]

This whole story smells, as if the manufacture care if the product is shit when the reason is MS trying to make things cheaper, the company's are still making money from the making the 360 for MS. What do they care if the machines are bricking, at least enough to make a public announcement. I don't believe I heard anywhere MS blaming the manufactures for doing spotty work, and that about the only reason that the Asian company's would say anything.

The more that brick the more they have to build and the more money that is made.

[Heet]

Bah, its a dead horse.

This post has been edited by Heet: Jul 8 2007, 07:03 AM