New Xbox Warranty costs Microsoft $1 Billion

[cheese]

This news is starting to get a bit old, but might as well post it. :)

Basically, Microsoft has increased it's warranty on the Xbox 360 to three years for all general hardware problems such as the Rings of Death. This warranty doesn't cover numerous other errors such as disc scratching consoles. Finally, Microsoft has stepped up and admitted that there have been a TON of problems with the Xbox 360. Still they say it's "isolated reports of problems", but the majority of people seem to disagree. Most retailers that offer in-store warranties are saying that 30-50% of Xbox 360's they've sold have broke and been returned to the store. I'm pretty sure EB games was the retailer that stated the startling high failure rates. It's pretty hard to find a person who actually still has a launch unit that hasn't broke on them.

Also Peter Moore (head of the Xbox department at Microsoft) has stepped down from his job and now works at EA. I wonder if he was actually fired because Microsoft posted a 1.89 billion dollar loss in the gaming division. This fall Microsoft is releasing a new chip (don't know the exact details) which will cool down the console. Currently, they are putting heatsinks (whatever that is) into all the new 360's to help cool them down.

Myself, I had my launch Xbox 360 break, a headset break, two games stop working, and a controller break. I'm still enjoying the games this system has to offer though, but the hardware is faulty.

[saintjon]

I wonder why I didn't hear about this until you posted it here and yet there was a media uproar when people were having troubles with their wiimote straps...

[James Carmack]

Probably because the reenactments of the flying Wiimotes are a lot more entertaining.

[kater]

True dat :D M$ can afford that kind of money and the Peter Moore thing is unrelated imo, most of his family lives in San Fran (despite being a scouser) and EA's base is in SF, plus M$ had a quality replacement lined up in former EA president Don Mattrick.

What I'll say about M$ is that I bought a first generation 360 in order to sell on ebay, ended up keeping it and after about six months suffered the ring of death. M$ sent a courier next day to pick it up, fixed/replaced within five days and sent it back by courier with an extra wireless controller, all I lost was a few game saves. Touch wood no problems since, I was very impressed with how they handled it and have no problems recommending 360 to those who ask. Plus it has a top games line-up with loads to come.

[Erfael]

For those of us who don't know...what is this circle of death?

[Hobbit]

If I remember right, it's when the console locks, refuses to boot up and lights up the circular button on the front, hence the 'rings of death'.

There was something on a BBC consumer programme a while back about this. Of course, Microsoft were, at that time if I remember right, denying there was a problem.

Funny how things turn out...

Hobbit

[kater]

If you see this sign, your 360 has become an expensive doorstop :D

http://farm1.static.flickr.com/187/365410351_176ef764c4_m.jpg

[James Carmack]

Maybe it's just the angle of the shot, but it looks like the light doesn't extend all the way around. If so, that'd make a good premise for a horror flick.

Seeking a commanding market share, Microsoft dared to venture where angels fear to tread, tampering with the dark arts to create the ultimate gaming platform. However, they will not suffer for their hubris, no. The victims are all of you, the fans. It is just a matter of time until it appears. The circle of death. When the circle of death is complete, someone you love will die. A band of gamers afflicted with the circle of death are in a race against time to undo Bill Gates' black magic before everything they hold dear is dragged into the Abyss.

Coming Fall 2009... 360 degrees of terror... The Circle of Death.

[vicki_girl]

M$ sent a courier next day to pick it up, fixed/replaced within five days and sent it back by courier with an extra wireless controller, all I lost was a few game saves. Touch wood no problems since, I was very impressed with how they handled it and have no problems recommending 360 to those who ask. Plus it has a top games line-up with loads to come.

I'll second this. I came home and my husband told me the 360 had suffered "catastrophic failure" (he was quoting the guy on the help line). MS sent us a pre-paid UPS box to ship it to them. Also, we didn't even lose any game saves.

And as I recall, no the lights don't go all the way around. Weird...

(BTW, Love the story idea James. :D )

[cheese]

I thought Microsoft customer service was pretty good as well. I probably got my console back in about two weeks time with no problems or hassles along the way. I got a free Xbox 360 controller with the new system.

Microsoft thinks that 2008 will be their first profitable year in the gaming division. I can see this happening, despite the errors, because of all the Xbox Live Marketplace, games and accessory sales. Xbox 360 owners own more games then Wii and PS3 owners based on sales (partly due to the availability and those addicting achievement points), and over 60% of all third-party games sold are for the Xbox 360.