Microsoft Xbox 360′s Billion Dollar Malfunction and a Memo to Its Gaming Team
Last Revised on July 6, 2007Love Your Health Money Family & Relationship
“From: Peter Moore (IEB) [Microsoft's Game Chief]Sent: Thursday, July 05, 2007 1:22 PM
To: Entertainment & Devices Division FTE
Subject: Xbox 360 Warranty Enhancements Announcement
Team,
I wanted to take the chance to update you on some new changes that we are rolling out across the Xbox 360 business globally. Today we announced we are enhancing our Xbox 360 warranty for any Xbox 360 owner that experiences the “three flashing red lights†error message within three years from time of purchase. In addition, we will reimburse customers who have paid for “three flashing red lights†repairs in the past because their warranty had expired.
…
While the majority of Xbox 360 owners continue to have a great experience with their console, some of our customers have expressed frustration with having to return their consoles for service for general failures indicated by the three flashing red lights on their console.
The enhanced warranty will require a significant investment, however we believe this is the right decision for our Xbox 360 customers and the Xbox business. We are standing behind our product, which delivers a great gaming experience to millions of customers around the world. I want to thank the various teams that have worked diligently on this issue. Your dedication and teamwork led us to diagnose the three flashing red light failures and determine a go-forward solution.
Robbie and Chris Liddell will hold a conference call with financial analysts at 2:30 p.m. Pacific time. In addition to the call, we are proactively communicating with the gaming community through an open letter from me to the community on Xbox.com, a podcast with Major Nelson, as well as considerable media outreach.
Peter"
Microsoft recently announced a flaw in its xbox 360 console that causes hardware failures signaled by three flashing red lights. The company is currently offering to repair or replace problematic Xbox 360 consoles. They are also extending Xbox 360 warranties from one to three years and offering to reimburse those who bore the cost of fixing the the consoles. They will incur pretax costs of as much as $1.15 billion related to repairs of its Xbox 360 video game consoles.
Microsoft has also reduced the Xbox price in Japan, blaming it on low-sales there. The sales of the machines overall has missed the forecast for the year. According to Tokyo-based research firm Enterbrain Inc., Microsoft sold 122,565 consoles this year through June 24, compared with sales of 1.78 million Wiis and 503,554 PlayStation 3 units. Microsoft has clearly fallen behind as far as its gaming console Xbox 360 is concerned, maybe Bill Gates should take over the leadership of its gaming division after all.
As always, please feel free to leave suggestions, ask any questions for help or simply discuss the topic. We highly appreciate your involvement and input everyday. If find it helpful, please share it with your friends by using one of the buttons below.
July 10th, 2007 at 9:01 am
I wonder why ppl buy console as a computer can do a lot more things than wat consoles can. Its a waste of money.