Microsoft Expands Xbox 360 Warranty Coverage to 3 Years

RC Cola · Jul 5, 2007

http://www.gaming-age.com/news/2007/7/5-14

Microsoft Corp. today announced that it will expand its global Xbox 360 warranty coverage. Any Xbox 360 customer who experiences a general hardware failure indicated by three flashing red lights will now be covered by a three year warranty from date of purchase. All other existing Xbox 360 warranty policies remain in place.

As a result of what Microsoft views as an unacceptable number of repairs to Xbox 360 consoles, the company conducted extensive investigations into potential sources of general hardware failures. Having identified a number of factors which can cause general hardware failures indicated by three red flashing lights on the console, Microsoft has made improvements to the console and is enhancing its Xbox 360 warranty policy for existing and new customers.

Microsoft stands behind its products and is taking responsibility to repair or replace any Xbox 360 console that experiences the "three flashing red lights" error message within three years from time of purchase free of charge, including shipping costs. Microsoft will take a $1.05 billion to $1.15 billion pre-tax charge to earnings for the quarter ended June 30, 2007 for anticipated costs under its current and enhanced Xbox 360 policies.

"The majority of Xbox 360 owners are having a great experience with their console and have from day one. But, 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. "We value our community tremendously and look at this as an investment in our customer base. We look forward to great things to come."

For any customer who has previously paid for repair expenses related to the three flashing lights error message on the Xbox 360 console, Microsoft will retroactively reimburse them.
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bladeage · Jul 5, 2007

damn it!

Brando2101 · Jul 5, 2007

good news. It's nice that Microsoft finally stopped sweeping these problems under the rug. Is the policy retroactive to current 360 owners?

RC Cola · Jul 5, 2007

Yes it is (assuming they have the RROD anyway I think). Some more from the Xbox site:
http://www.xbox.com/en-US/support/petermooreletter.htm

To our Xbox Community:

You’ve spoken, and we’ve heard you. Good service and a good customer experience are areas of the business that we care deeply about. And frankly, we’ve not been doing a good enough job.

Some of you have expressed frustration with the customer experiences you have had with Xbox 360; frustration with having to return your console for service after receiving the general hardware error message on the console.

The majority of customers who own Xbox 360 consoles have had a terrific experience from their first day, and continue to, day in and day out. But when anyone questions the reliability of our product, or our commitment to our customers, it’s something I take very seriously.

We have been following this issue closely, and with on-going testing have identified several factors that can cause a general hardware failure indicated by three flashing red lights on the console. To address this issue, and as part of our ongoing work, we have already made certain improvements to the console.

We are also implementing some important policy changes intended to keep you in the game, worry-free.

As of today, all Xbox 360 consoles are covered by an enhanced warranty program to address specifically the general hardware failures indicated by the three flashing red lights on the console. This applies to new and previously-sold consoles. While we will still have a general one year console warranty (two years in some countries), we are announcing today a three-year warranty that covers any console that displays a three flashing red lights error message. If a customer has an issue indicated by the three flashing red lights, Microsoft will repair the console free of charge -- including shipping -- for three years from the console’s purchase date. We will also retroactively reimburse any of you who paid for repairs related to problems indicated by this error message in the past. In doing so, Microsoft stands behind its products and takes responsibility to ensure that every Xbox 360 console owner continues to have a fantastic gaming experience.

If we have let any of you down in the experience you have had with your Xbox 360, we sincerely apologize. We are taking responsibility and are making these changes to ensure that every Xbox 360 owner continues to have a great experience.

This will take a few days to roll out globally, and I appreciate your continued patience as we launch this program. I’ve posted an FAQ that should address some additional questions, and we’ll update it over the next few days.

I want to thank you, on behalf of all us at Microsoft, for your loyalty.
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rezdawg · Jul 5, 2007

Great news...I havent turned on my XBOX in weeks because I was scared it would break. I can play again!

Coach AI · Jul 5, 2007

Nice of them to start to take responsibility for it. "things break' indeed.

bladeage said:

damn it!
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This is bad?

bladeage · Jul 5, 2007

Rokkit said:

Nice of them to start to take responsibility for it. "things break' indeed.

This is bad?
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It is for me, cuz mine died a couple months ago, and I don't have the receipt. Plus i got another one already.

Faos · Jul 5, 2007

Great news considering I'd already bought an extended warranty through Microcenter because of reported problems.

Brando2101 · Jul 5, 2007

They also released the Elite in Japan at 90 dollars cheaper than what it sells for her. Someone's getting desperate...

http://www.canada.com/nationalpost/financialpost/story.html?id=a7dad531-a636-4887-a297-cf2a5163de34

Microsoft Corp., which trails Sony Corp. and Nintendo Co. in game-console sales in Japan, will offer its new Xbox 360 model at a cheaper price in the country than in the U.S. to help gain market share.

The black Xbox 360 Elite will sell for 47,800 yen ($390) in Japan, less than the $479.99 price in the U.S., the Redmond, Washington-based company said in an e-mailed statement today.

The machine, whose 120-gigabyte hard disk drive can store six times the data of the current model, goes on sale Oct. 11 in Japan.

"The decision on the pricing was based on the situation in the Japanese market," said Jun Yoshihara, Microsoft's Tokyo- based spokesman. "We are not satisfied with our position in Japan and working to improve it."

Microsoft failed to take advantage of its one-year lead over Sony's PlayStation 3 and Nintendo's Wii in Japan, as its software lineup didn't live up to expectations.

The company has since increased the number of game titles, courted famous creators and introduced a cheaper model to boost sales. Xbox 360 sales lagged behind the Wii by 14-to-1 and the PlayStation 3 by about 4-to-1 in Japan this year, according to estimates by Tokyo-based research firm Enterbrain Inc. last month. Microsoft sold 122,565 consoles this year through June 24, compared with 1.78 million Wiis and 503,554 PlayStation 3 units, according to the report.

Shares of Microsoft fell 2 cents to $30 at 10:07 a.m. New York time in Nasdaq Stock Market trading.

The stock is little-changed this year.

Peter Moore, Microsoft's vice president of interactive entertainment, said in September that insufficient Xbox game titles were the reasons for falling behind Nintendo and Sony in Japan.

In the U.S., Microsoft outsells Sony. It sold 154,900 Xbox 360 machines in May, compared with 81,600 PS3s, according to data compiled by Port Washington, New York-based NPD Group Inc. Nintendo sold 338,000 Wii units, NPD said. Microsoft sells two Xbox 360 models in Japan for 39,795 yen and 29,800 yen each. The Wii, which has no hard drive, costs $250. Sony's $499 PlayStation 3 machine has a 20-gigabyte hard drive, while its $599 console has a 60-gigabyte drive.
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A_3PO · Jul 5, 2007

Good move by them. This shows you how Microsoft responds in a truly competitive environment.

Coach AI · Jul 5, 2007

Brando2101 said:

They also released the Elite in Japan at 90 dollars cheaper than what it sells for her. Someone's getting desperate...
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They may actually believe they can narrow the gap with the PS3 in Japan. Not very likely, but worth a shot I guess.

Invisible Fan · Jul 5, 2007

bladeage said:

It is for me, cuz mine died a couple months ago, and I don't have the receipt. Plus i got another one already.
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Send it with the reciept you got from the other one.

bladeage · Jul 5, 2007

Invisible Fan said:

Send it with the reciept you got from the other one.
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well not only that plus I let a friend of mine mess with it, cause he wanted to fix it. So he took it apart, which will pretty much void any warranty.

DonkeyMagic · Jul 5, 2007

i didnt even think a receipt was needed

RC Cola · Jul 5, 2007

Brando2101 said:

They also released the Elite in Japan at 90 dollars cheaper than what it sells for her. Someone's getting desperate...
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I wouldn't call that desperate. Consoles are a lot cheaper in Japan than they are here. The 360 Premium has been selling for at least ~$80 cheaper I think. The PS3 sells for ~$405 (20GB) and ~$486 (60GB). The new 80GB PS3 with IPTV sells for ~$560 in Korea. I could add in some European prices if people start feeling jealous.

Basically, don't look to much into the pricing, at least in regards to MS trying to sell it cheaper as a desperation tactic.

tinman · Jul 5, 2007

Brando2101 said:

They also released the Elite in Japan at 90 dollars cheaper than what it sells for her. Someone's getting desperate...

http://www.canada.com/nationalpost/financialpost/story.html?id=a7dad531-a636-4887-a297-cf2a5163de34
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i'm sure they're desperate for money that microsoft company.
i would care about the japanese market...if I lived in JAPAN!

chow_yun_fat · Jul 5, 2007

tinman said:

i'm sure they're desperate for money that microsoft company.
i would care about the japanese market...if I lived in JAPAN!
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It's not about the money, it's all about the market share. RC explained it perfectly, I hate that guy sometimes. His posts are almost always perfect and spot on. IIRC on Neogaf someone said the ps3 was bundled with Everybodys Golf 5 for $422 USD.

Invisible Fan · Jul 5, 2007

tinman said:

i'm sure they're desperate for money that microsoft company.
i would care about the japanese market...if I lived in JAPAN!
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A bigger Japanese market would mean more Japanese games for the Xbox.

bladeage said:

well not only that plus I let a friend of mine mess with it, cause he wanted to fix it. So he took it apart, which will pretty much void any warranty.
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Maybe your friend is a certified repairman...

J/K because that would be fraud if he wasn't.

tinman · Jul 5, 2007

Invisible Fan said:

A bigger Japanese market would mean more Japanese games for the Xbox.
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at least they got this one

Ziggy · Jul 5, 2007

I bet you can't even pull off the pile driver.

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