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Microsoft extend Xbox 360 warranty and offer refund to customers

by Steven Williamson on 6 July 2007, 09:18

Tags: Xbox 360, Microsoft (NASDAQ:MSFT), Xbox 360

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Microsoft's Peter Moore has finally spoken on behalf of the company and admitted fault for the Xbox 360 hardware issue , which has seen thousands of consoles being returned for repair since the launch in 2006. Microsoft say that the problem, which specifically relates to the 'three red rings of death', is related to several factors, but declined to go into further detail. However, Moore did say that Microsoft have 'not been doing a good enough job ' dealing with the issue and as a result have reviewed their policy on repairs.

Microsoft confirmed that all new Xbox 360 consoles and those already in the public domain will today be covered with a three year enhanced warranty program and they'll refund everyone who has already paid for their repair - if it's related specifically to the 'three red rings of death'.

Microsoft have said that the move will cost them at least $1 billion and they will "take a US$1.05 billion to $1.15 billion pre tax charge to earnings for the fourth quarter that ended June 30 for anticipated costs under its current and enhanced Xbox 360 policies."

Peter Moore's statement

To our Xbox Community:
You've spoken, and we've heard you. Good service and a good customer experience are areas of the business that we care deeply about. And frankly, we’ve not been doing a good enough job.

Some of you have expressed frustration with the customer experiences you have had with Xbox 360; frustration with having to return your console for service after receiving the general hardware error message on the console.

The majority of customers who own Xbox 360 consoles have had a terrific experience from their first day, and continue to, day in and day out. But when anyone questions the reliability of our product, or our commitment to our customers, it’s something I take very seriously.

We have been following this issue closely, and with on-going testing have identified several factors that can cause a general hardware failure indicated by three flashing red lights on the console. To address this issue, and as part of our ongoing work, we have already made certain improvements to the console.

We are also implementing some important policy changes intended to keep you in the game, worry-free. As of today, all Xbox 360 consoles are covered by an enhanced warranty program to address specifically the general hardware failures indicated by the three flashing red lights on the console. This applies to new and previously-sold consoles. While we will still have a general one year console warranty (two years in some countries), we are announcing today a three-year warranty that covers any console that displays a three flashing red lights error message. If a customer has an issue indicated by the three flashing red lights, Microsoft will repair the console free of charge — including shipping — for three years from the console's purchase date. We will also retroactively reimburse any of you who paid for repairs related to problems indicated by this error message in the past. In doing so, Microsoft stands behind its products and takes responsibility to ensure that every Xbox 360 console owner continues to have a fantastic gaming experience.

If we have let any of you down in the experience you have had with your Xbox 360, we sincerely apologize. We are taking responsibility and are making these changes to ensure that every Xbox 360 owner continues to have a great experience. This will take a few days to roll out globally, and I appreciate your continued patience as we launch this program. I've posted an faq that should address some additional questions, and we’ll update it over the next few days.

I want to thank you, on behalf of all us at Microsoft, for your loyalty.

Source :: Xbox.com


HEXUS Forums :: 47 Comments

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i wonder if they will reimburse any of the poor customers to have had to pay the £60
mcmiller
i wonder if they will reimburse any of the poor customers to have had to pay the £60

For any customer who has previously paid for repair expenses related to the three flashing lights error message on the Xbox 360 console, Microsoft will retroactively reimburse them
;)
'We will also retroactively reimburse any of you who paid for repairs related to problems indicated by this error message in the past.'

*EDIT*

Damn you agent!
That is really good news. I've only recently got mine and have been worrying about the red rings already. Pleased that they have taken this stance, very good customer relations.
ye finally some good news, they should of acted on the problem sooner tho with the amount of complaints they had