Microsoft’s entertainment division announced that “the number of repairs for the Xbox 360 console have been unacceptable to us” and they have increased the warranty period for all XBox 360 consoles to three years. Customers who have paid more than $139 on out of warranty repairs will be reimbursed. Estimated cost will be well over $1 billion.
I believe this will put a good sized dent in this division’s profits, despite their claims otherwise. Microsoft can absorb this loss, but it is a huge blunder in the design of the console, and compared to the reliability reports coming in from Sony and Nintendo, Microsoft is the only one of the three suffering this kind of a problem.