Monday, July 9, 2007

Microsoft Extends Xbox 360 Warranty Coverage

Software heavyweight Microsoft Corp. announced last week that it is extending the warranty coverage of its popular gaming console, the Xbox 360. According to Microsoft, any systems that experience a general hardware failure—indicated by three flashing red lights (the “red ring of death”) on the console's front panel—will be repaired and returned to the consumer at no cost. Microsoft said the expanded warranty applies to every Xbox 360, regardless of where or when it was purchased. The Redmond, Wash.-based firm added that the warranty is effective for three years from the original date of purchase. Customers who have conducted repairs at their own expense will be reimbursed, Microsoft said. Toward that end, Microsoft said it assumed a $1.05 billion to $1.15 billion liability for Q2 2007. This is the third time Microsoft has publicly addressed reliability issues related to its Xbox 360. Last September, Microsoft extended the original 90-day warranty to a full year. In April, Microsoft announced it would no longer charge shipping on repaired systems and that it would extend the warranty on those repairs, as well.