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 I view the
billion dollars as investment in our customer
base.
Robbie Bach, president of Microsoft’s Entertainment & Devices
Division
Microsoft will expand its global
Xbox 360 warranty coverage to three years for any unit that
experiences a general hardware failure indicated by the so
called "red ring of death" - three flashing red lights. Warranty
coverage for other issues will not change.
Microsoft made the move after what it said was "an unacceptable
number of repairs to Xbox 360 consoles." The company conducted
extensive investigations into potential sources of general hardware
failures and identified a number of factors which can cause
general hardware failures indicated by three red flashing lights
on the console.
Microsoft will spend an estimated $1 billion to repair the units
and pay for shipping.
“This problem has
caused frustration for some of our customers and for that, we
sincerely apologize,” said Robbie Bach, president of Microsoft’s
Entertainment & Devices Division. Bach said he viewed the
billion dollars as "an investment in our customer
base."
Microsoft will retroactively reimburse all customers who
previously paid for the "ring of death" repair.
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