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TheAnswer
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 Posted: Fri Jul 06, 2007 10:46 am Post subject: Microsoft Extends Warranty on the Xbox 360 to 3 Years |
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| Quote: | SEATTLE - Microsoft Corp. said Thursday it expects to spend more than $1 billion to repair widespread hardware problems in its Xbox 360 video game console after a large number of them broke down.
Microsoft said it would extend the warranty on the Xbox 360 to three years after too many of the consoles succumbed to “general hardware failure,” but the company provided few other details about the extent of the problems.
“We don’t think we’ve been getting the job done,” said Robbie Bach, president of Microsoft’s entertainment and devices division, which also makes the Zune digital music player. “In the past few months, we have been having to make Xbox 360 console repairs at a rate too high for our liking.”
Bach said the company made some manufacturing and production changes that he expects will reduce Xbox 360 hardware lockups, but he declined to identify the problems or say which others might remain. Microsoft said it will record a charge of up to $1.15 billion for the fourth quarter to cover the additional costs associated with the warranty extension.
Matt Rosoff, an analyst at the independent research group Directions on Microsoft, estimates that Microsoft’s entertainment and devices division has lost more than $6 billion since 2002.
Microsoft has written down larger amounts in the past — more than $10 billion in the late 1990s related to investments in telecommunications companies, and more than $5 billion related to antitrust issues — but a $1 billion write-down for one division in one quarter is significant.
“It suggests the problem is pretty widespread,” Rosoff said.
Microsoft will pay for shipping and repairs for three years, worldwide, for consoles that experience hardware failure, which is usually indicated by three flashing red lights on the front of the console, something gamers sometimes refer to as “the red ring of death.” Previously, the warranty expired after 1 year for U.S. customers and 2 years for Europeans.
Microsoft also will reimburse the “small number” of Xbox 360 owners who have paid for shipping and repairs on out-of-warranty consoles, Bach said.
In June, bloggers speculated that the Xbox 360 return problem was getting so severe that the company was running out of “coffins,” or special return-shipping boxes Microsoft provides to gamers with dead consoles. “We’ll make sure we have plenty of boxes to go back and forth,” Bach said in an interview.
Microsoft’s entertainment and devices division reported an operating loss of $315 million on $929 million in sales for the three-month period that ended in March. |
Taken from:
http://www.msnbc.msn.com/id/19620158/
Well thats good news especially for people who have already paid for their consoles to be repaired, I'd be ringing up and asking for the money back.
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LeonJ
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| Posted: Fri Jul 06, 2007 10:54 am Post subject: |
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Yeah, cannot wait. $200 in the mail for me. Although they say expect your check within 10-12 weeks!
Still, great move by M$.
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Crestfallen
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| Posted: Fri Jul 06, 2007 10:58 am Post subject: |
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Must be a serious problem for them to throw that much money at it for it to disappear.
Was it really worth it MS? It seems that rushing the product to the market has done more bad than good.
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LeonJ
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| Posted: Fri Jul 06, 2007 11:01 am Post subject: |
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Yeah, it's going to hurt them big time. But I mean, at least they are addressing this. I could not see Nintendo or Sony doing this. But most likely they wouldn't get into that situation as Japanese hardware design seems to a lot surperior.
Still, it's a good thing. I'm not the slightly bit nervous about my 360 now, it only takes a week from shipping to return to get it back.
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Crestfallen
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| Posted: Fri Jul 06, 2007 11:32 am Post subject: |
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^ Yeah definitely. I really do like MS for things like this. I am aware that they shouldn't have fucked up in the first place, but things happen and I doubt they knowingly released a defective machine, considering how much shit it causes in the future.
When I heard this I felt like going out and buying one right now, too bad I'm trying to cut back on game time this gen though.
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Karai Pantsu
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| Posted: Fri Jul 06, 2007 12:54 pm Post subject: |
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So this is confirmed as a Worldwide thing? It's awesome that they've (finally) manned up to the problem and offered such an good extended warranty/rebate. I'll be resting that much easier now, once I'm certain that Australia is included anyway 
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drunknmonkey_au
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| Posted: Fri Jul 06, 2007 12:56 pm Post subject: |
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It's taken em long enough but it's nice to see them admit they have a problem and finally do something to address it. At least it gives me peace of mind knowing that if (when?) my 360 dies again it'll be fixed hassle free.
EDIT: Confirmed world wide Karai. I think there'd be alot of pissed people if it was USA only
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Jim Dash
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| Posted: Fri Jul 06, 2007 2:13 pm Post subject: |
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This is bloody awesome! 3 years is great, considering mine was out of warranty and making weird noises!
Leon, you got it made mate!
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DeathFalcon
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| Posted: Fri Jul 06, 2007 2:20 pm Post subject: |
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| crestfallen wrote: | Must be a serious problem for them to throw that much money at it for it to disappear.
Was it really worth it MS? It seems that rushing the product to the market has done more bad than good. |
Not really they have obtained a large install base and have also snagged alot of exclusives. That extra year has pushed them ahead as the leading current generation console, and may be the key stone for a victory.
Great move by Microsoft. 3 YEARS!! WOW! to bad for the people who brought 3rd Party warranties from EB and such.
PS: Never had a problem personally with my console and I wasnt woried about it 
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Nexus
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| Posted: Fri Jul 06, 2007 2:30 pm Post subject: Re: Microsoft Extends Warranty on the Xbox 360 to 3 Years |
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It is great that Microsoft has acknowledged this problem. This should also ensure that the people at EB will stop trying to sell extended warranties for their consoles because I am fed up of hearing about it and their analogy to car insurance with console insurance.
| Quote: | | In June, bloggers speculated that the Xbox 360 return problem was getting so severe that the company was running out of “coffins,” or special return-shipping boxes Microsoft provides to gamers with dead consoles. “We’ll make sure we have plenty of boxes to go back and forth,” Bach said in an interview. |
Ouch. They must have definitely realised how bad the problem was when this occurred.
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LeonJ
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| Posted: Fri Jul 06, 2007 2:30 pm Post subject: |
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| Jim Dash wrote: | This is bloody awesome! 3 years is great, considering mine was out of warranty and making weird noises!
Leon, you got it made mate! |
Yeah, pretty happy. $200 back will be nice. Plus you makes everybody feel *safe* with their 360s. The service is really great too, 5 days turn around is good for any company. Seriously, in though the 360 is a bit flawed in design they are looking after us.
PS - My old DVD rom did the same as yours (was loud) but I never had any problems with it. When I got the red rings, I got a new DVD ROM though and I have not had one freeze up or anything since getting my new unit back.
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bradc1988
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| Posted: Fri Jul 06, 2007 2:57 pm Post subject: |
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http://www.xbox.com/en-US/support/petermooreletter.htm
There's an audio interview on there which provides a few details if you can't be bothered reading.
| Quote: | | to bad for the people who brought 3rd Party warranties from EB |
I know 
But if it fails in the next 2 years I won't have to send it to M$, just head to EB and swap it straight away.
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Infested Jibbs
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| Posted: Fri Jul 06, 2007 3:01 pm Post subject: |
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Is your new drive less noisy leon?That's the only prob with mine, plus sometimes when watching a dvd, the dvd spins up when first reading it(which is loud) but then doesn't 'spin down' while the movie is playing, so it needs a quick restart and then it's ok.
Bit annoying, but shit happens.Nice effort by ms, even though their hand was forced on this one.Didn't the orginal warranty only cover like 3 or 6 months or something?I can't believe all you guys thought 50 million dollars was big bucks for gta exclusives, this is costing them (apparently) 1.15 BILLION.
Now that's more like it, that's some serious coin.
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LeonJ
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| Posted: Fri Jul 06, 2007 3:11 pm Post subject: |
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| Jibbs wrote: | Is your new drive less noisy leon?That's the only prob with mine, plus sometimes when watching a dvd, the dvd spins up when first reading it(which is loud) but then doesn't 'spin down' while the movie is playing, so it needs a quick restart and then it's ok.
Bit annoying, but s*** happens.Nice effort by ms, even though their hand was forced on this one.Didn't the orginal warranty only cover like 3 or 6 months or something?I can't believe all you guys thought 50 million dollars was big bucks for gta exclusives, this is costing them (apparently) 1.15 BILLION.
Now that's more like it, that's some serious coin. |
My new drive is 1/2 as loud as my old.
I'm pretty sure you send it back, they gut it. Ie new drive and motherboard by default.
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A13x
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| Posted: Fri Jul 06, 2007 3:17 pm Post subject: |
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| LeonJ wrote: | My new drive is 1/2 as loud as my old.
I'm pretty sure you send it back, they gut it. Ie new drive and motherboard by default. |
Wow! Might need to find a way to force a RROD on my console now that it will be fixed for free... 
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LeonJ
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| Posted: Fri Jul 06, 2007 3:30 pm Post subject: |
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| A13x wrote: | | LeonJ wrote: | My new drive is 1/2 as loud as my old.
I'm pretty sure you send it back, they gut it. Ie new drive and motherboard by default. |
Wow! Might need to find a way to force a RROD on my console now that it will be fixed for free... |
Yeah, in a werid way I was happy mine died. I wanted a new DVD drive cause mine was bugging the crap out of me
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ppjim3
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| Posted: Fri Jul 06, 2007 3:46 pm Post subject: |
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A week ago and I wouldn't have had to wait for a check! It's great that I get it back at all (so great it's hardly believable) but man am I broke and really could have used that money right now.
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Beep
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| Posted: Fri Jul 06, 2007 9:07 pm Post subject: |
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Great. That extended warranty I got from JB Hi-Fi only last month is now useless. This especially sucks considering I'm flat broke right now.
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GroovySamurai
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| Posted: Sat Jul 07, 2007 12:35 pm Post subject: |
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| LeonJ wrote: | My new drive is 1/2 as loud as my old.
I'm pretty sure you send it back, they gut it. Ie new drive and motherboard by default. |
The replacement console they sent me is fine but the drive on mine also is sound, its even hard to drench the sound over the purring V8s in Forza 2
I don't see it as that much of a problem though. As long as I can play the games I'm happy - no way in hell am I sending the console away again.
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TheAnswer
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| Posted: Sat Jul 07, 2007 5:26 pm Post subject: |
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| Beep wrote: | | Great. That extended warranty I got from JB Hi-Fi only last month is now useless. This especially sucks considering I'm flat broke right now. |
Well not really, the jb hifi warranty should allow you to straight replace the console at jb. This microsoft warranty just repairs your own console. Yours is a much better deal IMHO.
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NismoR34
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| Posted: Sun Jul 08, 2007 4:47 am Post subject: |
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Well this is certainly good news. I think I am more impressed with the fact that they are reimbursing everyone who paid the $200 after warranty for their repairs though. I realise it isn't the first time Microsoft have reimbursed their customers (original Xbox price drop all those years ago) but even still, that's a nice move from Microsoft that they didn't really have to do.
Also happy to know that if my 360 craps itself after September now, I will still be covered by warranty. Not that I was worried about my 360 anyway, naive as it may have been I actually didn't expect mine to ever crap itself so yeah. We'll see, I guess...
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