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Gamers know they have a problem if three red flashing lights appear on their XBox360. Gamers on online forums have been referring to the event as “the Red Ring of Death” because the machine then shuts down.
In what may be one of the costliest consumer warranty repairs in history, Microsoft announced on Thursday that it would spend up to $1.15 billion to repair failing Xbox 360 game machine consoles.The size of the anticipated repair bill suggests that a third to as many as half of the machines are flawed.
Microsoft said it would extend the warranty of the game console to three years to customers worldwide. Previously, products sold in the United States were covered by a one-year warranty, while Xbox 360 units sold in Europe had a two-year warranty.
Xbox has been an important venture for the company and was viewed by many analysts as Microsoft’s attempt to compete with the likes of Sony and Apple for control of electronics and entertainment within homes.
Via : NYTimes