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July 11, 2007 |

Microsoft spends over $1 billion to fix Xbox 360s

By Jonathan Schlaffer





Microsoft spends over $1 billion to fix Xbox 360sMicrosoft has finally admitted they have a problem. With the number of returns on the Xbox 360 increasing and the sheer number of units being sent in for repair, the company has finally decided to do something about it.

It has extended the Xbox 360 warranty to three years and will reimburse anyone who had to have their console repaired due to the ?red ring of death? syndrome. The program is costing Microsoft close to $1.15 billion but Bill Gates carries that much in his wallet, for him and the company, it isn?t much money at all.

Users that have or need to have Xbox 360s replaced could be provided with either new or already refurbished Xbox 360 consoles.

Microsoft has said it has identified the problem that is causing all the failures and has corrected its manufacturing process so that future consoles will not experience the same problem.

According to Australian IT, retailers there have not seen this problem on Xbox 360s. Could it be that Microsoft knew about the defect and just sent those to the European and US markets?

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Related:

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  • PS3 costs Sony $3 billion - Will Nintendo Wii be only profitable console?
  • No more Xbox 360 red ring of death repairs
  • Xbox 360 HD-DVD to remain as add-on, Sony triumphs with PS3s Blu-Ray
  • Faulty Microsoft Xbox 360s flood UK market


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