Microsoft Expands Xbox 360 Warranty Coverage

DailyTech recently reported that Xbox 360 failure rate could be as high as 33%, and Microsoft confirmed that it is indeed a problem by introducing a new three year extended warranty on the console. This is retroactive all the way back to the launch date, so simply three years from the date of purchase. Hopefully by the time the three years is up, they can sell consoles that won’t break so quick.

Microsoft stands behind its products and is taking responsibility to repair or replace any Xbox 360 console that experiences the “three flashing red lights” error message within three years from time of purchase free of charge, including shipping costs. Microsoft will take a $1.05 billion to $1.15 billion pre-tax charge to earnings for the quarter ended June 30, 2007 for anticipated costs under its current and enhanced Xbox 360 policies.

Source: Gamerscore Blog