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When asked why this move -- a sort of mea culpa of a growing failure rate -- has taken so long, Moore replied that it was important to "gather data and weigh the financial implications" in addition to "preparing logistics and identifying problems." While it may have seemed like a long time for those of us in the grips of the hyperkinetic blogosphere, Moore assures us that, for a multi-billion dollar mega-corporation like Microsoft, they acted with some celerity.
So, they've identified problems? What exactly has been killing these Xbox 360s? Moore said there were "a number of issues" that they discovered from collecting data. When reminded of the great job they've done in servicing 360s to date still hasn't stopped some people from having to get their console serviced numerous time, Moore said that they've put "fixes in place" to address them. He pointed out that Joystiq was a great conduit to that very community and extended (what sounded to us like) a sincere apology. They're fixing these systems because the level has been unacceptable of late ... and no, Microsoft has "no intention" and sees "no value" in sharing what percentage of failure there is.
When asked if the total absence of Xbox 360 Elite on store shelves is related to the discovery and fixing of these flaws, Moore said no. "We're not in the business of taking things off store shelves." In fact, Moore said they've recently had to air freight consoles in to keep up with demand and, while a little early, he was confident the June NPD numbers would show a strong Xbox 360 Elite showing. That said, Moore was unable to confirm the rumors that the Xbox 360 Elite is less prone to the RROD error, stating it would be "irresponsible" to make such a conclusion based on the limited amount of data available following the console's April 29th launch.
Lastly, we wanted to know why the expanded warranty didn't extend to the disc scratching error, which is not covered under the general Red Ring of Death issue, and Moore claimed the numbers on disc scratching were a "very, very, very small percentage ... infinitesimal" even and affecting only a couple of (we're guessing very unlucky) countries.
Since Microsoft will take a $1.05 billion to $1.15 billion pre-tax charge to earnings for the quarter ended June 30, 2007 to pay for the estimated cost of this policy change, consumers can see this as a kind of corporate contrition; Microsoft making sure, at great cost, to do right by their customers.
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Suckers!
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Oh, and that chair looks comfy.
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So its gonna cost them 1.15 Billion
that sure is ALOT cheaper than the Madatory Federal Recall they are facing
thats what the BBB and my State Senator tell me since I sent them 4 angry letter each about the 360 failure rate
PS3= Autobot
Wii= Autobot in the Transformer Sequl which has already been shot like LOTR was they shot all 3 at the same time and Kill Bill
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They may show him the door a la Katarugi..
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Major Nelson you have NO credibility left what so ever your the 360's Ronald McDonald
33+% failure rate Nominated as WORST consumer Electronics product ever.
After 3 years its a 100% failure rate
failure rate my N64 SNES and Dreamcast all still work perfectly.
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I know, from reading what you wrote, that you are not the most intelligent person who ever lived. I'd ask you to reconsider this statement, however, since *the console hasn't existed for 3 years yet!*
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This seems very admirable of MS and they are taking a financial hit because of it. His answers seem very candid and I believe it does take some time to actually find a fix, figure out how to implement it effectively and then weed out the bad units from the good ones. I do not for a minute think there is a %100 defect rate that's insane and consider I'm still running my launch console just fine I am proof. I run the thing for hours sometimes leaving it running over night.. But even if it goes bad I know I am covered and it will be free plus they have a fix that will remedy the problem.
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#12 Yes--but the third year only covers the red ring defect.
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I think the failure rate is likely unacceptably high, but how much of that is user created failure I do not know. Having worked for a major computer manufacturer i know that the reported failure rate and actual failure rate is vastly different. I am pretty sure that under poor ventilation the system will display this error even though there is no 'flaw'. this could be a design flaw iguess because they did not anticipate where these units were going to be housed and how they were going to be used. A warranty extension of this kind is unheard of in the industry, that shows a lot of commitment on MS's side.
What is the deal with the out of box failure rate of the PS3 by the way. I had to go back to the store 3 times to get one that worked. My friend on Canada had to take 5 trips.
I think both MS adn Sony rushed their product to the market way too much.
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They're covered for accidental damage, which Microsoft's warranty probably doesn't sort.
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Hey losers! STFU, GTFO!
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Employees at Gamestop EB Games and Best Buy caught on Tape lying to customers about Microsoft's 360 Warranty
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Right up the ass, maybe.
MS screwed the pooch on this one and have simply found the lowest cost, bare-bones way to address. I'm still not even considering touching an Xbox 360 until the PROBLEMS DON'T EXIST.
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Careful, your nose might get alittle dirty if you get to close to Tatoo.
"Moore said that they've put "fixes in place" to address them. He pointed out that Joystiq was a great conduit to that very community and extended (what sounded to us like) a sincere apology. They're fixing these systems because the level has been unacceptable of late ... and no, Microsoft has "no intention" and sees "no value" in sharing what percentage of failure there is."
A sincere apology? No, damage control pure and simple. No value in the failure rate %...ya right, if he did that would be almost certain death for MS.
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Many policies have kicked in and repairs have been made on them by now. Will Microsoft settle with these warranty companies?
If a customer purchased a 2 year warranty at launch: Are they covered till 2010 or do they end up losing out and only have MS coverage till 2008?
How many customers bought an extended warranty for their Xbox 360 but, would not have if there had not been so much RRoD uncertainty?
What will happen to customers and warranty companies that sent of Xbox 360s to 3rd party companies for repair?
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The fanboys hate this because this makes the 360 the clear and obvious winner this gen.
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MS admits their problem, fixes it for the future and the past, and it's a scam somehow. each and every one of you are hypocrites of the first order.
the worst thing that could happen for the PS3 is MS fixing this issue, and now that they're addressing it you're all bugging the hell out. like roaches.
it's like, OH NO, what will i have to talk about now?
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How in the hell do you get 120 friends on your list?
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However I'd probably ask Gamestop this since they'll most likely try to say otherwise?
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But my 360 died, they wouldnt give me my download content back, and I sold the replacement to get a ps3.
Can I get my £100+ worth of DLC back Microsoft?
I thought not. Odd, because you have my credit card details.
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they sold X Box fans a defective piece of kit, blamed the failures on them, charged them for repairs, then decides to extend the warranty for three years to avoid a class action lawsuit?
yeah, real admirable.
when you pay over $400 for *ANYTHING, that sh*t better work.
i own a PS3. yes, it cost me $600, but it's a well built piece of machinery, and it had a year warranty since the *BEGINNING.
i feel sorry for all those 360 owners that bought store warranties (biggest scam in history), and the fact that a lot of new 360 owners have to worry about if their system is going to break down or not. warranty or not.
i may have the warranty on the PS3, but my stomach doesn't churn everytime i turn the thing on, or update the firmware, in fear that it's not going to turn on or get bricked.
this shouldn't be a concern for a single X Box fan out there.
they spent their hard earned money on technology that should be sound.
the PS2 had major issues for the first 6 months or so of release, by it's year birthday, they were sorted out.
the 360 is almost two years old, and people are still having major problems with the software.
this is ridiculous.
it's good that you all got an extended warranty, but you probably would have gotten a lot more if you had all gone through with the Class Action lawsuit.
i really want a 360, but i don't want to deal with the stress of worrying if my console will break down, period.
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funniest video i've ever seen
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That backup account never got credited.
I gave up in the end.
If you are defending microsoft, then you are obviously an employee of MS, or a fanboy.
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seriously your getting your money back if you had to pay out of warranty there fixing the problem and extending the warranty to 3 years for the rrod! sounds like good new where i live on earth! and it's sound like some you you nerds need to put down the sony kool-aid, after all it's so bitter.
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you don't get credited, you have to get point codes from the people at tech support. yeah you do get them i got over 26,000 points refunded. you have to set up another account so you can re-download your missing content. i spent 20 min getting about 18 codes but twas worth it for the points. now the whole process takes some days, but you should hold on to your ref # so they know what your talking about.
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they dont make money on repairs, and claim they've made improvements on the repaired units and new units, maybe its really over.
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Nope. I own a PS3, 360, Wii, and everything else. You said you lost it, then you changed your story.
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Facking liars. I'm not buy a Dam thing from mircosoft or any of its sub-companies any more...Sorry halo 3 (he sighs...then smashs his fist through a copy of VISTA...he then smiles once again after spiting on it)
Hey Peter "Pan" Moore ....YOU SUK!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
P.s. I have nothing against Bill Gates :-)
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$1.15B/$400= 2,875,000 units they figure to have to fix.
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The RROD was hurting them. Lots of people were affected.
This is text book DAMAGE CONTROL.
Score 1 for the gaming community!!!
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Your math isn't off, but your logic is... 1.15 billion has nothing to do with sales figures, which is what $400 would be. It does not cost MS $400 to fix the console. If any figure should be used, it would be the $130 or whatever they charged to fix it. But of course that would throw your math equation into resulting in a near 80% failure rate, which is ridiculous. Basically, your equation is FUBR- it's nonsense.
Back on topic, you really can't fault MS on this. They are addressing an unanticipated issue as best as a corporation with the bottom line in mind ever has. I feel much more secure in my purchase now ;-)
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