MS face $1bn Xbox repair bill
Hinting for the first time that the company faces more than just isolated reliability problems with the Xbox 360 console, Microsoft have today revealed that they could face a one-billion dollar bill for the extension of warranties to cover faulty consoles.
Microsoft are offering customers that suffer hardware problems a free three-year warranty, the console maker also concedes that it had been forced to make "an unacceptable number of repairs" following widely reported issues. The issue in question is, of course, the dreaded 'ring of death', which sees the console's main button turn red and the system cease to function.
Microsoft won't reveal how widespread the problem is, however, they admit it is "bigger than they are comfortable with", according to a BBC report on the subject. "The majority of Xbox 360 owners are having a great experience with their console and have from day one," commented big cheese Robbie Bach. "But this problem has caused frustration for some of our customers and for that, we sincerely apologise."
Microsoft say they still expect their Xbox division to make a profit for the 2007-8 financial year, more soon.