Microsoft Acknowledges 360 Issues, Extends Warranty to 3 Years
RamblinLonghorn writes "Microsoft has announced that they are extending the warranty for all Xbox 360s to 3 years. This appears to be entirely retroactive and that 'those who have already paid for such repair charges can expect reimbursement checks for the amount of their console repair.' It seems as though Microsoft is accepting the blame for the hardware malfunctions, but it is worth noting that this warranty modification only applies in the 'Red Rings of Death' situation."
I wouldn't want the hassle of having to send my console away for it to be repaired. I'd rather buy a quality console first time around.
They actually admitted to anything that was considered wrong from their part?
love the taste, hate the texture
I'd like a 360. I really would. There are games I'd like to play (PGR3, Dead Rising, some others), as well as games coming out I'd like to play (Rock Band and many others). But I keep hearing about failures. I know people who are on at least their 3rd 360. I've seen the estimations recently putting the failure rates as high as ~30% (which, even if is off by 5x is quite high). If you combine that with the noise the things make, I'm hesitant to buy one. I keep waiting for a re-spin of the silicon (moving to a smaller process should help with the heat/noise issues).
The Elite might have got me but instead of pushing the models down, they just put the Elite on top with a new higher price point.
Comment forecast: Bits of genius surrounded by a sea of mediocrity.
...and for those of us who have no idea wtf the "red rings of death are", see here
(Posted anonymously to avoid karma whoring)
I'm not normally a fan of MS, nor do I own a 360, but this is a great move by Microsoft - and not something they NEEDED to do. They could have just fixed the problems and made it a year or so but by extending this to a three year warranty (retroactive) they are going to save a lot of people money.
Companies like GameStop who sell extended warranties though might not be happy since I certainly wouldn't buy one now that MS is backing their system up for 3 years.
It's not surprising. What is it with all the new consoles having so many hardware problems? Oh yeah... the bling $$$ bling.
Heh. My NES / SNES still work fine ~15 years later. Hell, even my SMS is fine!
Assuming they just do full replace and junk, and pay full retail price, that is >2.5 MILLION failed X-Boxes in the next 2 years. Assuming each repair costs Microsoft only $200, they are budgeting for 5 MILLION failed x-boxen!
With only 11 million X-boxen shipped, that 33% failure rate is sounding like an UNDERCOUNT!
Test your net with Netalyzr
Even the new 360 Elite model is getting RRoD at what seems like the same rate. Microsoft blew it big time, it's good they are extending the warranty but it would be better if they fixed the root problem too.
The 360 in my apt has 4 lights lit. It used to be 3, but it's since decided to light the 4th after I attempted the towel trick to fix it (the towel trick worked once, but the second time, it didn't work at all, and shortly after that, the 4th LED lit).
We'll have to call MS when I get home to see if that's covered.
with any luck, they'll cover it and we wont' have to shell out 150$
...spike
Ewwwwww, coconut...
Its amazing when any big company willingly does something like this (without a class action, intense media coverage, etc). What is more amazing is its microsoft doing it. Guess they figure they can't afford to look bad at any level in such a high heat console war.
Regardless of your opinion of Microsoft, they have continually impressed me with their willingness (eventual) to own up to issues with the console and extend the warranty retro-actively. I just can't see Sony doing the same thing in this situation. I feel good knowing that if I get the red rings of death (my friend already had one bout with it), that they will pay for it since my console will still be good for several more years now.
"To strive, to seek, to find, and not to yield." - Tennyson
And yet it still outsells its market competitor
BZZZTTTT!!!
The 360 is selling significantly slower than the first Xbox. It is dead in Japan. It is dead in Europe. At it's current rate the 360 won't even make the same worldwide installed base as the first Xbox.
Wait, let me guess, you get your console sales news from teamxbox and vgcharts! Heh, what a tool...
The 360 is selling almost entirely to the very same diehard Xbox crowd in the US as last gen. The rest of the gaming world continues to not give a shit about the 360 or shiny green garbage like Halo.
> You have three choices, nintendo ... xbox ... and finally the sony PS3,
You forgot one. There is the PS2 as well. It's a decent, fun system and you can still buy games for it. It's not to be totally ignored just yet.
I'll probably be modded down for this...
I'm not saying that 3year warranty would be a bad thing, but seriously... Has there been any *good* on this year (or two) long episode. M$ should have acted a long time ago, and what they did was only unevitable since 360 users had been driven to point M$ was close to be massively sued..
Microsoft officially apologizing for Vista and offering XP licenses to those unhappy with it. Meanwhile, they work on a new OS that will actually run on modern hardware.
I know I'm feeding a troll, but I'm bored, so here you go.
If by your logic, sales equals how the "gaming world" feels about the Xbox 360, what does this say about the PS3? Can you give less than a shit about something? In the last available figures (May 07), NPD has Xbox outselling PS3 by 2 to 1; the Wii outsells it by 4 to 1. This is NPD by the way; A non-biased, market research group.
Im still running my launch console, and its nice now that i have and even longer warranty on my 360. I had already purchased a 1-year extended warranty through Microsoft (as i got mine from Zellers), so now the additional 3 years is kind of a good thing, i still have 2 years left then i guess. I had a 2 red light error once and I just unplugged everything for a few min and hooked it back up and running flawless since, Though i do regularly clean my 360 but blowing compressed air into the vents and use the vacuum hose up against the vents to pull out and dust/dust bunnies that may be lurking, seems to work quite well as my 360 is actually very quiet (my PC is WAY louder with my 7 case fans). I dont plan on buying an elite either. I know quite a few people have had theirs die, and i guess that does suck to some degree, Im still happy with my choice of console, as the other 2 choices still have shit all for actual blockbuster titles.
First one died within 8 hours of purchase, RRoD. 2nd one died 8 months later RRoD, 3rd one died 6 months after that, cd drive crapped out.
Best Buy covered all 3 death's but the third one required me to blow 60 bucks on a new "Protection Racket".
So I'm covered for any more RRod's for 2 more years.. and my "Protection Racket" will cover me for at least one more dvd drive failure.
I refuse to spend any more on this system, so my only question left is how many more I'll have die on me before I'm out of freebies.
Using their financial numbers as to the cost of extending the warranty to 3 years, MS themselves anticipates a full 3.8 million COMPLETE NEW replacement Xbox 360's to have to send out. That gives you an idea as to the failure rate they are seeing. This is at the current FULL RETAIL cost of the system and not using only repair costs. If it only costs $100 to repair, that would mean an anticipated 11.5 million failures during the 3 year warranty period.
We were all warned a long time ago that MS products sucked, remember the Magic 8 Ball said, "Outlook not so good"
I would be curious to see some links backing up either your or the parent's claims about sales success/failure. Just saying "It's out selling the competitor" or "The 360 is selling significantly slower than the first Xbox. It is dead in Japan. It is dead in Europe. At it's current rate the 360 won't even make the same worldwide installed base as the first Xbox." doesn't really prove anything. Give us some actual traceable figures...
"* A 30-40 percent failure rate"
This is incorrect. You really shouldn't battle propoganda with propoganda.
Ok Gamasutra reporting the NPD numbers for May
May's NPD tally comes to 338,000 Wii, 155,000 Xbox, and 82,000 PS3.
Nope, its not outselling the wii. It has a higher marketshare due to a year more on shelves, but at this rate it'll be gone by years end.
I still have more fans than freaks. WTF is wrong with you people?
The most amazing thing to me is that according to these figures the PlayStation 2 sold 188,000 units during May So the old gen PlayStation outsells the nextgen Xbox 360 and the PS3.
Top selling hardware for may is:
DS 423,000
Wii 338,000
PSP 221,000
PS2 188,000
Xbox 155,000
PS3 82,000
GBA 80,000
Even funnier. Handhelds are more popular then the big nextgen wonders.
Point taken. I think the PS2 outselling the PS3 is still the greatest evidence that Sony priced themselves out of competition.
You're right of course, I just pit Sony and Microsoft against each other because that's what this particular AC is thinking about.
You have to be joking!
Sony is selling their seven year old system at faster rate than Microsoft is in the Xbox's strongest market. All the games people are going out to buy for the PS2 will run on their PS3s, all the franchises they are buying at a faster rate than the 360 are getting next gen sequels on the PS3. Developers who seven to eight years ago started working on PS2 engines are still being able to leverage that technology they created years ago in the giant and still expanding PS2 market.
PS3 component prices are in a freefall as anyone who reads the manufacturing press knows for things like the blue laser diodes in the BluRay drive. Sony has made it clear that manufacturing prices for the PS3 are on target to reach break even at the one year point just like they did with the PS2.
The PS3 is selling at a rate that is right between the first Playstation and PS2...
Sorry, but trying to spin the amazing PS2 sales as anything but extraordinarily positive for Sony is just silly.
The PS3 is selling at a rate that is right between the first Playstation and PS2..
That would be fine and dandy, if the market was a static, fixed, number of customers. 82,000 units in a month in todays market stinks. I agree with you that the PS3 is a marvelous piece of technology. The games look beautiful, and a few of them are probably pretty fun. It may even catch on and get back into competitiveness, but in my opinion, based on the NPD numbers and daily press stories, I wouldn't bet on it.
All the games people are going out to buy for the PS2 will run on their PS3s, all the franchises they are buying at a faster rate than the 360 are getting next gen sequels on the PS3. Developers who seven to eight years ago started working on PS2 engines are still being able to leverage that technology they created years ago in the giant and still expanding PS2 market.
Which means they (consumers and developers) will not be spending their money on PS3 related products. Just by looking at the wii versus gamecube, you can see an advantage in not having two product lines in the same market. The Wii is near enough in price to the Gamecube, that it is easy to justify shelling out the extra $150 or so to get the wii. Developers, who shunned the wii for the most part, now see the success of the Wii (in large part due to pricing and timing) and are scrambling to divert money to wii related projects. Unless you expect the ps2 to be there in another 7 years, and the NPD numbers show the PS2 under 200,000 for the first time since initial launch, you have to get the consumers and developers on the newer technology.
I'm so glad I didn't buy that warranty extension.
I wonder how those that paid 150 bucks for the extended warranty from different companies feel about this?
I work for a high tech company that makes expensive hardware, far pricier than the xbox, and I've come to understand a lot more about the cost of warranties from the supplier end. Extending warranties is essentially a loss for the the manufacturer - you're essentially betting when what you made will fail. That's weighed against the cost of making more durable components and the cost that a customer would not buy your product in the first place.
When the 360 first came out, someone made a decision that beyond one year it would cost the company too much to repair the consoles relative to the increased sales than would be had by having a longer warranty. They also had to take into account the bad publicity that could (and did) occur.
I'll be pure engineer here - someone at Microsoft redid the formula, given the knowledge of failures that have happened since release. This time around, the math said that enough future sales would be lost to outweigh the cost of extending the warranty. It's really that simple. It's also interesting to note here that they didn't make it a lifetime warranty (20 years or something). They probably ran that formula too, and decided that the math tips the other way if you let it last forever.
So did they NEED to do this? If by need you mean "saving face", then no. Being the retrospective hero doesn't help anything, only in the sense that it might affect future sales.
Is there any information about customers who have purchased an extended warranty from MS? (as I did after a RRoD prompted a replacement, and my 1 year retroactive warranty was about to expire) Any guesses as if that part of the "repair costs" that they indicated would be refundable?
i got my xbox in feb 06, and have not had any problems with it. i guess i'm just lucky.
I've recently had problems with the USB ports on my PS3, but Sony won't touch it for free since I no longer have my receipt (nevermind that it's impossible for the warranty to have expired by now; I guess the policy saves them some money). So with Microsoft retroactively extending the warranty like this, what happens to those people who voided their warranty, thinking that it was expired?
To be honest, I'm somehow certain that this has far less to do with any possible class action lawsuit, and far more to do with the potential for disgruntled gamers jumping ship to Sony. That, I believe, is what would make Microsoft stay awake at night. They didn't do much of anything until gamers started posting online, "F@$# it! I'm getting a PS3!"
And that matches Microsoft's past behavior in every market that they eventually come to dominate. They don't act upon problems until there are customer rumblings of using alternatives.
IF any other manufacturer had a defect rate of 30% (slightly above that according to the largest game retailer there is, being EB) mostly due to heating dissipation design and were getting as many complaints as they were I don't see any other choice. The press has gotten really bad in the last month or so on this issue.
Had they not made this press release, it would have probably adversely affected sales.
Hmmm... Pie...
Bravo to a good business decision.
Someone has run the numbers of the amount of money they are losing due to poor rep and compared it to the cost of extending the warrenty period. They clearly found that extending the warrenty would
* make people feel more comfortable about their purchase.
* keep some more people with an xbox to buy games.
They aren't doing this because xboxes are failing left right and center. They are doing it because their failure rate is low enough that they know it won't send them broke.
3laws: No freebies, no backsies, GTFO.
I got my 360 shortly after its initial release, and I put a lot of hours on it (especially in the first year -- not so much this year); for the years that I had it, it was rock solid, and I think it's been a great console. As it turns out, it finally died a month ago and I was disappointed to find that it was out of warranty... Until now. This warranty extension will mean a lot to me, and I am very grateful to MS for having put it in action. Thanks, guys!
This is exactly what Microsoft wants to hear right now
vi +
I'm astonished to read so many "mine is okay, except a game doesn't work" or "no problem so far, only a broken dvd drive" comments. Don't be so forgiving! This is a game console, not a PC. There's no reason why it should break within such a short timespan! I've bought dozens of consoles, and all of them still work. Some of them are over 20 years old!
Developers who seven to eight years ago started working on PS2 engines are still being able to leverage that technology they created years ago in the giant and still expanding PS2 market. That's all fine and dandy, but what about the PS3 market? Sony has made it clear that manufacturing prices for the PS3 are on target to reach break even at the one year point just like they did with the PS2. That's all fine and dandy too, but when will the PS3 take the 40%+ markdown so that it can actually start to compete with its lower-priced competitors? The PS3 is selling at a rate that is right between the first Playstation and PS2. That's all fine and dandy as well (if true), but that was when the Dreamcast was imploding and Nintendo was fumbling with the Gamecube. This is now where the 360 is an established competitor, the Wii is blowing everyone away, and handhelds are more of a market presence. The relevant question: Was the PS2 as far behind the PS1 in sales eight months in, as the PS3 is behind the PS2 now? Sorry, but trying to spin the amazing PS2 sales as anything but extraordinarily positive for Sony is just silly. "Extraordinarily positive?" Their last-gen system is still outselling their next-gen system, while the other two next-gen systems are also beating said next-gen's shiny black exhaust port. Yeah, Sony's still making cash on the PS2, but that system's into the fourth quarter and there ain't no overtime in this game. If you think Sony's situation is "extraordinarily positive", the Bush Administration has a PR job waiting for you in Iraq.
http://www.megagames.com/news/html/console/microso ftconfessandfixrrodepidemic.shtml has gone all the way to say:
[quote]Some people would believe that Microsoft have just discovered the issue and fixed it, as expected from a reputable multinational company. But when asked, Robbie Bach, president of Microsoft's Entertainment & Devices Division for a "little over first year" the "set of issues wasn't visible at all," but during the last couple of months the company has seen "significant increases, significant call volume, and significant attention" to the problem. During those "couple of months" Microsoft actively denied the problem several times. [/quote]
I'm actually fairly impressed that MS have finally decided to be mature about this problem and put a damage control system in place. Surely with their acceptance that they have a QA problem they will seriously invest in a solution to the ongoing hardware problems a select group of users have encountered. Thus far (touch wood) I've had no issues other than the occasional crash with my launch day 360! Thankfully this extended warranty period now gives me some piece of mind that I'm covered in the event of something going wrong.
All science is either physics or stamp collecting.
The formulas used to calculate warranties are meant to cover manufacturing errors. Every once in a while, a defective unit will get past quality control in the factory due to human error. The warranty is designed to protect customers if they get one of these units.
The "Red Ring of Death" is likely from a design flaw, not a manufacturing error. A manufacturing error would not account for the abnormal failure rate. It is literally built into every unit that leaves the factory. The only long-term solution to a design flaw is a product recall.
Extending the warranty is just a temporary solution because Xbox 360s will continue get the "Red Ring of Death".
I bet thats only because lots of geeks buy two, and that MS dumps 100000s in landfill because they are unrepairable. (at least the dead MBs)
11m sold, but I bet at least 3m are dead, 5m seconds.
Liberty freedom are no1, not dicks in suits.
11m xbox360s, make X heat every day = billions of tonnes of C02. Evil MS!!!
Liberty freedom are no1, not dicks in suits.
Many people are really missing the bigger point here. This is like Hyundai offering a 10 year warranty on their cars. They are basically saying that the product you are buying is poorly designed/built and will fail.
Some people mistakingly think that Hyundia is offering a great deal without considering the cost of this arrangement. Sure, they fix whats broke, but what about the cost of getting it fixed, such as the day of vacation you had to burn when your car died, the tow truck to get your car to the garage, the time/hassle of arranging the service, the cost of the rental car you had to get while your car was in the shop for a week.
Add up all of these "hidden costs", and you could have just gone out and purchased a superior product in the first place.
These hidden costs are in this "great deal" from MS. What about the time you spend reporting the problem, unhooking and packaging it, the gas/time taking it to the post office. What about the 2-4 weeks you are without the 360, not only can you not play games, but you can't play movies or stream music.
Remember that cost includes a lot more than the price you initially paid, the most important of which is your ability to use the product.
//TODO: Insert catchy phrase
This is a huge turnaround for Microsoft, and what many people were waiting for (this, and evidence that they've actually solved the problem) to purchase a 360.
However, are we now going to get the much desired retraction from all the 360 fanboys who's anecdotal evidence "proved" that this problem wasn't widespread, or are we going to have to be satisfied with the usual semi-collective "I told you so"?
Microsoft is claiming this is going to cost them over a billion (1.15) dollars. If you assume that 300 mil is used for administrative fees, and you divide by the approximate manufacturing costs of the unit, you get something like 2.66 million 360s that they're planning on replacing. Basically a third of all the 360s sold to end users to date. Fun!
I don't think it's really that simple. Consider, from a non-engineering perspective:
when the xbox360 came out the warranty was only 90 days
they extended it to 1 year around the time the ps3 / wii came out
it shows microsofts solution didn't fix the issue first time around
it was just a workaround that seemed to get the system going again
Good point. I don't see this mentioned very often. This was situation with my broken 360. When they sent me a replacement, none of my XBLA games would work unless I signed into Live. Very irritating when my internet connection dies and I want to pass the time with XBLA.
This is the same problem you face if you buy the 120GIG hard drive(or buy an elite) and transfer your content from an old hard drive.
Correct except that last part. You will have NO DRM issues by transfering your content from a 20 gig HDD to the 120 gig. Buying the Elite is different as you are replacing the whole system. The System (and your gamertag) is what holds the license. As long as the "Core 360" is the same (Probably based on CPU Serial #), the game license stays.
You know you've found a true loser if you find somebody who feels the need to preemptively declare himself the winner.
Your arguments - that this proves that laws are not good for consumers, or that something goes out of business if it s bad - are so utterly absurd that any reply to them is inherently unneccessary.
The best part, of course, is that I'm not even Norwegian. I'm Swiss. We have a direct democracy, which means our "nanny laws" were put in place by a vote of the people. Yeah, that's right, the people voted to have these "nanny laws." Where does that leave your "people choose something, so it must be good" theory? You think we are too stupid to make these decisions on our own?
Nearly all nanny states operate the way yours does - either directly or just one-off. But you can't distinguish between 'people choosing something for everyone as a LAW' and 'individuals making their own best choices'? Do you really want to defend mobocracy that way? Yes, people are too stupid to make decisions for anyone but themselves, I'll stick by that.
Do you really want 'the people' to make your individual decisions? Telling you what you can or can't eat, what you can or can't learn, how much of your own life and the income you generate from it (I'm guessing you're an unemployed state-dependant leech - IE student) you get to keep?
It's particularly problematic when a majority of the people who are unproductive (YOU) can raise taxes on a small minority who are productive (ME), causing the productive (again, ME) to either move or stop working, causing the unproductive (Guess who) socialist workers paradise to collapse.
So tell me - what would happen to the prices of consumer electronics if you increased the warrenty to 10 years?
Huh? I did not say I quit. I said I felt you did not want to discuss this, but only to insult me, which was why I felt there was no need to reply. However, you then raised some (barely) interesting points, which I felt I should address. But yeah, you're right, I better make an appointment with a shrink right away. Thanks for your diagnosis, you saved me from certain doom. By the way, switching your argument just to reply to another's argument, and faulty uses of reductio ad absurdum also seem pretty insane to me, so you might want to see your shrink, too.
Seriously, what the hell is wrong with you? You seem way too angry, considering the fact that you live in your own little free market paradise. I suggest you get help instead of trolling /.
More important than the warranty is, in my opinion, that Microsoft claims that they fixed the issue. I quote Peter Moore from an interview by N'Gai Croal:
Not quite as reassuring as I would have liked, but still good to know.
So two questions:
1) When does the mobocracy go to far?
What would happen if your mob ruled that the warrenty had to be 10 years - what effect would that have on price and availability? I answer your questions - but your inability or unwillingness to answer mine suggest you are aware your argument is pretty weak.
And the insults? They are for fun - adding to my enjoyment of what otherwise would be a dull discussion with yet another humorless socialist.
The Xbox 360:
A product that literally is 'defective by design' (although probably not intentionally, DRM aside).
Privacy begins with