Microsoft's woes: US$ 1 billion to repair 360s

Posted Jul 7, 2007 at 2:23AM by QJ Staff Listed in: Xbox 360 Tags: Microsoft, Ring of Death, Robbie Bach
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The Xbox 360 - Image 1Microsoft's smile isn't as wide as it should be. But then, any company shelling out US$ 1 billion in repairs to the Xbox 360 would have very little to smile about. General hardware failures, glitches, and bad publicity handicaps the company as it tries to fight for market share in the highly competitive console market.

Analysts estimate that the company has lost more than US$ 6 billion since 2002, and it doesn't seem to end there. Microsoft extended their warranties again last Thursday, and announced that they will be shouldering shipping and repairs on consoles hit by hardware failure indicated by the "red ring of death" for a period up to three years.

Robbie Bach, President of Microsoft's entertainment and devices division, announced that the company would be implementing changes to manufacturing and production processes which he expects will reduce the number of hardware lockups. However, he failed to identify the problems or comment on which ones might persist.

With just a few days away from E3, news like this could potentially dampen the spirit people have for the much-awaited Halo 3. While the news may be bleak, at least we're seeing efforts to address the problem.

Via Yahoo! News

 
 
 

Comments [refresh]

by AoxomamoxoA - 2007-07-06 23:22
» hmm

$1 billion huh? Thats like a dollar for microsoft right?

by GOPAL892005 - 2007-07-06 23:39
» !

oh well - thats only 497,280,000 GBP ; )



a 10th of how much they paid for the GTA Episodic Content Exclusivity : )



atleast MS have admitted to the problem [finally] and are doing something about it.



btw: does anyone know how much MS make each day? just wondering.

by dhammalama - 2007-07-07 00:55
» mind your B's and M's

So they paid 4,972,800,000 GBP for some episodic content!? No, I think you are confused. They paid MMMMillions not BBBBillions

by Stealth - 2007-07-07 03:02
» lol

They get paid 10 bucks an hours for scrubbing toilets, and 700,000 for making games, while spending 1billion of there own money fixing there failure of a console.



Then make articles like this to make us feel sorry for them.



Sad day for america.

by Stealth - 2007-07-07 03:06
» lol

Yea i heard they wipe there a.s.s with money. The use of money in exchange of toilet paper is interesting.



If so i wonder if they lose more money anyway.

by TruthSayer - 2007-07-07 03:34
» to be expected

This was to be expected, really.

Microsoft pushed hard and fast to get the first next-gen console out there.

And this is the price that they have to pay for getting that intial market share.

by Mister Common Sense - 2007-07-07 03:54
» To idiot fantards out there:

Microsoft was paying for most of these hardware failures. Now they are paying for nearly all of them with an unheard of 3 year warranty. MS is paying over 1 billion dollars, when they are still not making money in the gaming division. Now the worst thing that can happen to any XBOX 360 owner is not having a console for 3 weeks if it breaks. That's it. Yet the fantards still try to turn it around and say their unproven PS3 out for only 7 months will never break. Does the PS3 have a 3 year warranty? Will sony extend the warranty if they screw up and a lot of people get burned? HELL NO!



Then dumbass fantards acted like these problems will go on forever. Why would a company do that? Not only are existing systems now covered 3 years, new systems will be fixed to prevent future problems. I knew it would happen, it had to. Looks like the desperate PS3 fantards have nothing to go on now to bash the 360 anymore. That's too bad. Hopefully the bad press will clear up and the idiots that interviewed a former EB games employee who thought 33% of XBOXes are returned, then wrote a well believed article based on opinions will go back to whatever piece of s*it online magazine they work for.

by hmm - 2007-07-07 04:32
» well...

lol maybe you should just spend all day playing your 360... that would be better than reading another of your crapptastic rants Mister Common Fantard.

by Xbox is the best - 2007-07-07 04:42
» thank

thank you microsoft, dont stop posting mr common sense dont mind these sony losers

by ike - 2007-07-07 05:45
» sucks to be you

well be glad Microsoft is doing something about there problems where as if this was sonys machine getting screwed up they wouldnt do ***** about it, and probeby just moan about it and how it wasnt there fault.



then place the blame on the consumers.

by lmao - 2007-07-07 05:47
» what?

How are people angry about this?



First off I've never had my 360 break and I've owned it since Day 1 (literally was the first person to get it at the store), no problems whatsoever.



Add to the fact that they have added Three year warranties on ALL systems (so even if you bought it bootleg you are STILL good) and will fix problems for free, the worst thing you do is lose the system for what, 14 days? Z0mG freak out!



Lmao it seems people are just a tad bit upset that we are benefiting daily while others lose out and don't get the support they were promised.



Regardless, kudos to MS they are fixing their ***** up in brilliant fashion.

by GOPAL892005 - 2007-07-07 06:03
» !

i didn't say they paid 497,280,000 GBP for episodic content [thats for the repair costs] > i said they paid a 10th of 497,280,000 for the episodic content! come to think of it, its really a 20th [25Million GBP -or- 50Million USD]

by PWN - 2007-07-07 06:13
» "Fantards"

I've seen no bad comments about the 360 here so idk what your talking about.

by someguy - 2007-07-07 06:47
» good customer service from MS

I recently got the ring of death but even so i dont see the big deal. If having to go without a console for 2 weeks is what i have to do for a 360 its more than worth it. Besides a few months ago my disc drive had a problem i sent it to them and got it back in like 5 days.

by ochoaman - 2007-07-07 06:50
» why IS everyone so angry??

Both companies are losing out. MS is because of the 3 year warranty, and Sony loses on average about 200 per console on the PS3. But the PS3 fantard DOES have a thing to say ;) MS may be paying your shipping and repairs but in true fact the xbox will still be breaking. May not be yours but another persons, that's just the way it is.

by Jin Wu - 2007-07-07 08:22
» I Feel Sorry For You

All these posts and you still spew nonsense like it was your first post.



Microsoft at first blamed their customers for problems. Then they fixed only the launch systems for free and then only once. But the scratches were still the customer's fault, the 360 does not scratch games according to Microsoft.



Then it was you pay the $150 and we'll send you a refurb with a 30 day warranty. If it breaks after the 30 days, you'll have to pay the $150 again because the refurb was repaired and tested before it was shipped. Then they decided the refurb could share your initial warranty and they'd fix it like it was your first. But still if your disks were damaged in the process it was still your fault. And lest not forget, through all of this the customer was responsible for shipping except for the launch systems and the 3rd revision of their repair warranty.



Moving forward, now it seems that maybe there is something wrong with the way 360's are made (the problem is they're cheaply made with corners being cut from the processor to there not even being thermal grease on the cpu and gpu). But again, no one in Microsoft will admit that they're manufacturing process is flawed nor that when shipping repair units, the units actually featured additional cooling units and heatsinks like they originally should have. But, the scratched discs are still your fault, the 360 does not scratch discs.



So in closing, on par with all of your previous posts you know nothing about business and absolutely nothing about reality. Because if after all of the lies and deception you will defend Microsoft, then I have to question either your grip on reality or your age. Because no sound adult would offer the type of childish rhetoric that you continue to spew day in and day out and not see what a fool they look like to people with common sense.

by MyDixieNormous - 2007-07-07 12:25
» Please Stop

I'm only on my second console (first was bought AT LAUNCH, never had 3rrod or anything else.) I sent it in because of minor freezing, but other than tht it was ok. MS even gave me a brand new one for free. So these people talking about it being so bad are probably fanboys, or are using it wrong anyway. I know plenty of people that still have their 360 that they bought at launch, and they don't have any problems with it. And the 360 IS being fixed so that this doesn't happen again, and people will stop complaining about it.

Just take care of your system properly, and it won't have any problems.(BTW 360 isn't the only one freezing, my ps3 freezes too whenever I try to play warhawk, and Wii has done it a few times)

Glad to MS is doing something to fix this :)

by Jin Wu is gay - 2007-07-07 13:11
» haha

MS has put a 3-year warranty and is going to give anyone who has paid them money for repairs a refund, and your critizising them? They are giving money back! Im going to have to question your age and sexuality, *****

by Chuck Norris - 2007-07-07 13:40
» lmao

i love console wars, i also love the smell of overheated Xbox 360's in the morning, smells like victory! mmm..

by MESSIAH - 2007-07-07 14:31
» Warranty

I applaud micro$oft for upping their warranty yet again... let's not forget that the original warranty was what 90 day? Then it was upped to a year not long after the PS3 was launched with a 1yr warranty out the gate. I have had a 360 since January 06... and I haven't gotten three rings yet... but I also haven't been playing it much... it's collecting dust (until Ace Combat). M$ isn't really made out of money because if you lose enough it's hurting someone... the fact is M$ rushed the 360 out and are now just admitting to their mistake.... im happy and those with 360's should be also... it's not money out of my pocket if my 360 breaks... good going M$... now back to my sony machine.

by qw - 2007-07-07 15:39
» Hilarious

stealth just stop, you only make yourself look worse with every comment you make.



Then again, you might as well keep going, since you can't go much lower



To Common Sense, I love my 360 and all, and generally have no problem with MS, but you support MS a little *too* vigorously.



They pay you don't they?

by Stealth - 2007-07-07 17:48
» lol

come on you can't possibly take that comment seriously though the last two sentences was serious. But the other two wasn't.



Just having a laugh.

by Stealth - 2007-07-07 18:04
» LOL to Jin Wu is gay

Im sorry what nerve do you have for bashing Jin Wu from what i heard and read from him its basically true. The GPU is a basic prototype which they forgot to test while making the system. They could have put the real version in there, but given they wanted to put out there console first and have a year start it couldn't come to pass.



Now there reaping the faults. Remember rushing a system may give you the lead in consoles sales but it could lead to poorly constructing the system.



The ps3 may be behind but at least there system has been working with a 1% less failure rate. Coould there be problems in the future for the ps3, yea there could be.

The ps3 has Blu-ray diodes delay and backed up during last Christmas. And had Blue-ray lasers backup a few months ago. They have anough of those now to make tons more of there system. So right now there good.



Mister common sense You calim to point out fanboys here and call them fantards. But every time anyone see's or reads your posts its like your the biggest one. Thus making you a hypocritical fanboy.

Im a fan and i point out facts. Your system has been failing. The 3 year extended warranty doesn't help MS since they will lose more money regardless. It might give the fans and xbox fanboys like you to retaliate to sony fans and bash them for supporting sony.



Then you go on about how you tinker with your own system and such. For some reason that sounds like BS. And you suggesting it to us to tinker with our systems is pointless and makes our warranties void. And we don't have time to do it either, some of us do have lives you know.

by All BElieve - 2007-07-07 19:30
» Ha and HA

this just proves why microsoft doesnt belong in games their just way to unreliable. Not only with games but computers to. And those who say ps3 sux, just like psp its just going to get better and better. Sony just keeps throwing "updates" and it be twice as good as the xbox,

by Xman - 2007-07-08 07:27
» fake

the ps3 fails more then any system, my friends dropped his down the steps and now he has to get another one!! check it out !! ( http://dpad.gotfrag.com/ps3/story/33643/ )

by ochoaman - 2007-07-08 09:25
» lol

that was published July 25, 2006, and why are the PS3's breaking because of people stupidity?

by Kristian - 2007-07-14 00:19
» They still can't be making a mint on 360s though.

And, as an owner of a dead 360 - I won't be buying another until there is a very serious revision.



I break my back working to spend my hard earned dollars. Products like this shouldn't be sold.



Why don't companies (in Canada at least) like the CSA and ULC step in when they see such a problematic product?

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