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Microsoft plans over $1 bln charge for Xbox repairs
Reuters ^ | 7/5/2007 | NA

Posted on 07/05/2007 2:13:23 PM PDT by Daus

LOS ANGELES (Reuters) - Microsoft Corp. said on Thursday "an unacceptable number of repairs" to its Xbox 360 will force it to take a charge of more than $1 billion for its most recent quarter, and it announced a new, extended warranty for the video game console.

(Excerpt) Read more at news.moneycentral.msn.com ...


TOPICS:
KEYWORDS: xbox; xbox360
Yikes. $1 Billion? That's alot of blinking red lights. Glad I'm still waiting. :)
1 posted on 07/05/2007 2:13:26 PM PDT by Daus
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To: Daus

Now if they’ll just compensate me for all the Blue Screens of Death that I got prior to Win XP.


2 posted on 07/05/2007 2:16:10 PM PDT by John Jorsett (scam never sleeps)
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To: Daus

I own a 360, and thank goodness it hasn’t gotten the Red Ring of Death yet.

The failure rate of this thing is widely speculated to be far above that of the PS1 — and that’s the machine I had the most problems with ever.


3 posted on 07/05/2007 2:16:37 PM PDT by Black Guy who is a Republican
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To: Daus

My box is only a couple of months old, but so far, so good.


4 posted on 07/05/2007 2:18:12 PM PDT by gcruse
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To: Daus
..."an unacceptable number of repairs"...

Probably something Microsoft built in all by themselves. Make a better product you don't have to repair so many.

5 posted on 07/05/2007 2:20:53 PM PDT by GingisK
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To: Daus

We had the red ring on ours back in NOV 06. We had to pay $140 for repairs but to our surprise, got a refund check in MAR 07 after they announced the extended warranty. The only time I ever smiled while saying “Microsoft”


6 posted on 07/05/2007 2:20:55 PM PDT by Mopp4
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To: Daus

360s fail at a rate of about 30%.. MS continues to lie and spin and “no comment” their huge problems with this system.

Accepted numbers are 3-5% failure rates for hardware... 360s are failing at about 30%.

MS continues to stonewall, this financial disclosure required by regulations is the ONLY public admission of a known problem with their product.


7 posted on 07/05/2007 2:23:34 PM PDT by HamiltonJay
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To: GingisK
Probably something Microsoft built in all by themselves. Make a better product you don't have to repair so many.

They got "Protected Content" crippling software on X-boxes?

Just wondering...

8 posted on 07/05/2007 2:24:03 PM PDT by Publius6961 (MSM: Israelis are killed by rockets; Lebanese are killed by Israelis.)
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To: Daus

My son’s XBox croaked, then the drive died and finally the headset went belly up. Other than that, it’s been fine. To MS’ credit, it was all fixed under the extended warranty. I’m sure glad we bought that!


9 posted on 07/05/2007 2:25:43 PM PDT by ProtectOurFreedom
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To: GingisK

I’m no huge fan of M$, it is a pitty that they screwed the pooch on this one, their HQ is still in the US and they mad a flat out inferior product.....oh yeah, it is M$ after all...

I will say wfw 3.11 is alot of fun to tweak.


10 posted on 07/05/2007 2:27:13 PM PDT by padre35 (Quod autem isti dicunt non interponendi vos bello)
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To: HamiltonJay

That’s what happens when companies cut back in their quality control departments.


11 posted on 07/05/2007 2:39:06 PM PDT by Prophet in the wilderness (PSALM 53 : 1 The FOOL hath said in his heart , There is no GOD .)
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To: Daus

So far so good with mine.. However, these things get awfully hot.


12 posted on 07/05/2007 4:07:54 PM PDT by SealSeven (Moving at the speed of dark.... Even "nothing" takes up space.)
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To: Daus

Were they manufactured in... China?!!


13 posted on 07/05/2007 4:27:50 PM PDT by Right Wing Agitator (I Love Keeping Liberals Angry!)
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To: HamiltonJay

Leave it to Microsoft to find a way to build hardware that fails as bad as software.


14 posted on 07/05/2007 6:59:59 PM PDT by CharlesWayneCT
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To: CharlesWayneCT

The division of Microsoft that covers the original XBOX and 360 has LOST over 20 BILLION DOLLARS with no end in site... the XBOX program has been a complete fiscal DISASTER.

Shareholders should be demanding this entire division be shut down. They did have 1 profitable quarter last quarter, which I am sure this writeoff more than wiped out! November will be 6 years since the original XBOX debut, and MS is still losing money on this turd.

Its lead in installed base this generation, which they had over a years head start will be GONE in another 2 month roughly. With the WII outstripping a years worth of sales in 10 months. PS3 will likely outsell the 360 as well, though at a slower pace. I’d say somewhere in late 08-mid 09 PS3 will have a larger installed base than the 360.

Its unreliable, hit a demand wall, and overpriced. MS decision to get into bed with the HD-DVD format was a stupid one... trying to harm Sony by reviving a dead spec... so everyone who shelled out cash for this add on turd is going to wind up with a doorstop... etc etc etc.

From every measurable business means, the XBOX program has been an utter failure, and 360 will end the day with maybe 20-25 Million worldwide sales, and that assumes they fix their hardware problems. They have pleanty of titles out, HALO 3 is the last big push this thing is going ot get, for the forseeable future, and there are only just so many teen and 20 something boys who are going to shell out 300-500 to play one particular game. THe system has hit a wall in throughput, and short of a spike with Halo 3, there is nothing else to get these turds to move.

Nice hardware, but an absolute financial failure on all counts.


15 posted on 07/06/2007 6:21:21 AM PDT by HamiltonJay
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