1 billion dollars – just think about that number for a minute. It’s a large number, a huge dollar amount, and that’s how much Microsoft is estimated to spend on Xbox 360 repairs.
According to Robbie Bach, President of Microsoft’s entertainment and devices division, “In the past few months, we have been having to make Xbox 360 console repairs at a rate too high for our liking.” Bach didn’t go into specifics, other than to say that there have been “general hardware failures” which is generally signified with three flashing red lights.
As a result of the failures, Microsoft has announced that they are extending all Xbox 360 warranties to three years. This includes all 360 consoles that were purchased prior to the announcement. This also means that those who have had to pay for repairs will be reimbursed by Microsoft for the costs that they incurred.
Currently the Xbox 360 is ranked #2 behind the Wii and ahead of Playstation 3. Bad publicity could potentially effect this, but it does sound like Microsoft is handling it properly by extending the warranties. Microsoft has also said that they have made improvements to the console which should help reduce the amount of repairs needed for the newer Xbox 360 consoles.
If I were Microsoft, I’d be getting a little nervous right now. Analysts say that Microsoft has lost more than 6 billion from their entertainment and devices division since 2002. I thought 1 billion dollars was a huge amount to be spending on repairs, but 6 billion is an even larger amount that’s hard to fathom.
Hopefully the Fall release of Halo 3 will be enough to keep Microsoft and the Xbox 360 console going strong.
Source: AP [via Yahoo]