Redmond (WA) – Microsoft today said that it is now covering Xbox 360 consoles with a 3-year warranty for general hardware failures and will reimburse customers who previously paid for certain repairs.

The new initiative comes as a result of what Microsoft calls an “unacceptable number of repairs to Xbox 360 consoles” and will provide an extended warranty for new and existing Xbox 360 customers. The company said it will be covering any Xbox 360 that is experiencing a general hardware failure indicated by three flashing red lights with a three year warranty from the date of purchase.

According to a statement released on Thursday, Microsoft has “identified a number of factors which can cause general hardware failures“ and  has made “improvements to the console.” In combination with the extended warranty, the company expects this move to cost between $1.05 billion and $1.15 billion - which Microsoft will record as a pre-tax charge in the Q2 earnings report, due for release on July 19.

Included in the charge are reimbursements that Microsoft will pay to customers who previously paid for repairs due to “three light” general hardware failures.

"The majority of Xbox 360 owners are having a great experience with their console and have from day one. But, this problem has caused frustration for some of our customers and for that, we sincerely apologize," said Robbie Bach, president of Microsoft's Entertainment & Devices Division, in a prepared statement. "We value our community tremendously and look at this as an investment in our customer base come."

Refurbs?

Jul 05, 2007 16:24     

How does this affect refurbished consoles? It says from date of purchase and not date of manufacture. If this is held to refurbs (which I doubt but please someone correct me)I would buy one right now.
Mars report abuse vote down vote up Votes: +0

Whew...

Jul 05, 2007 16:32     

Cool, I can stop holding my breath when I turn on my 360 for another year and a half...
RdwngsFn81 report abuse vote down vote up Votes: +0

Human after all

Jul 05, 2007 16:49     

Thanks MS. Nice move.
anon report abuse vote down vote up Votes: +0

Nope

Jul 05, 2007 17:02     

I actually wish it was from the date of refurb. If it was, the 3 year warranty would always be still going for a long time.
Michael report abuse vote down vote up Votes: +0

I'm Impressed

Jul 05, 2007 17:49     

They finally responded to the problem, and satisfactorily I might add.
Ryan report abuse vote down vote up Votes: +0

Go M$

Jul 05, 2007 18:05     

Good to know... now I just need to make sure that I keep track of my receipt for another 2 years.
gm0n3y report abuse vote down vote up Votes: +0

Human, Impressed...say what?!

Jul 05, 2007 18:49     

You guys have got to be kidding. The bean counters simply added up the numbers and it's cheaper and less troublesome that being smacked in the face with a class-action lawsuit.
Noya report abuse vote down vote up Votes: +0

Re: Human, Impressed...say what?!

Jul 05, 2007 19:53     

Unbelievable... when MS does right you won't give them credit for it. Which console manufacturer provides a 3 year warranty for their consoles? Only Microsoft.
SpoiledMilk report abuse vote down vote up Votes: +0

Of course hes' right

Jul 05, 2007 20:36     

Of course he won't give them credit. He's right. They're probably getting hit with so many BBB complaints right now that MS' is spinning so fast it looks like it should star in the next Poltergeist movie
Keith report abuse vote down vote up Votes: +0

3 years because of making large mistakes

Jul 05, 2007 20:51     

Why Microsoft need to extend the warranty again? It is because XBox360 is flawed from the design to manufacturing. In half a year, I got 3 XBox 360 because of the 3 red ring of death. The first one even dies of HDD error then 3 red ring of death after removing the HDD and played for a while. My current one's DVD drive will come out automatically when playing for some time and sometimes cannot close even powering off. Need to "push" by hand all way back. Because of the large amount of titles I purchased, I am really waiting for the HDMI version to come to Asia and buy a new one then sell the current refurbished one. The last mistake Microsoft took is: they lying they are using "special" new XBox 360 to exchange the broken ones in Hong Kong.

PoorGuy report abuse vote down vote up Votes: +0

And thats because.....

Jul 05, 2007 21:10     

http://www.youtube.com/watch?v...mp;search=
David report abuse vote down vote up Votes: +0

The gods are smiling

Jul 05, 2007 21:22     

My xbox 360 broke 2 weeks back when I bought Forza 2. I realized after calling microsoft yesterday I was going to have to wait another month before I had the dough to exchange it as it was out of warranty. Now I called microsoft and I can get a new one next week!Thank the gods!
Duncan report abuse vote down vote up Votes: +0

to SpoiledMilk

Jul 05, 2007 21:29     

While this move is great, you have to remember that MSFT doesn't do things that cost up-wards of a billion dollars out of the kindness of their hearts. They raised their 90-day warranty to one year AFTER both Nintendo and Sony released their machines with a standard one year warranty. And now, after months and months of public outcry about higher than normal failure rates on the 360 all the while MSFT kept denying any issues, they now come out with a public apology and a new 3year warranty. Again, these things happened because MSFT was forced to by the market not because they thought it would be nice for consumers. Noya is right; a class action law suite was pretty much pending and it may still happen especially that now MSFT has half admitted to the problem - which in itself (admitting to the problem) is long overdue.

Rob report abuse vote down vote up Votes: +0

Re: Re: Human, Impressed...say what?!

Jul 05, 2007 21:47     

For a time, warranty was a mere 90 days. With an estimated "30 per cent" (the reg) failure rate, the volume of complaints virtually *necessitated* extensions. When you change "...MS does right..." to '...MS (finally) makes right...', and hypothesize the reason, it doesn't play as admirably.
lurker report abuse vote down vote up Votes: +0

honerable move

Jul 05, 2007 22:01     

hey MS did finally something worth mentioning. Mine broke 2 months ago. 3 red lights and they refused to repair it because it was out of warranty but this move made me believer in Bill Gates. It has its flaws but coming back and recognizing problem is bigger gesture then any other company has done it so far...
mh report abuse vote down vote up Votes: +0

3 years

Jul 05, 2007 22:22     

I am on my 2nd Xbox, 3rd PS and 3rd PS2. I don't think I've ever had any console last 3 years. It's not like I'm rough with them, they just aren't made to last (except Nintendos, I still have all mine dating back to NES). The PS and PS2 had well known laser problems and the power supply connector was very weak on the Xbox, resulting in a short. Neither MS nor Sony offered a 3 year warranty on their previous consoles, despite their flaws. I'm glad to see this is starting to change. I might be ready to go next-gen now after being burned on the previous two.

nvalhalla report abuse vote down vote up Votes: +0

No red rings here but glad to hear this

Jul 05, 2007 22:25     

7 months of ownership and zero (0) red rings of death and about 3 freezes. 29 months of stress free play to go! I hope my 12 year old CRT monitor that my 360 is hooked up to holds out.
encognito report abuse vote down vote up Votes: +0

Ridiculous.

Jul 05, 2007 23:21     

Agree with Rob. After reading this feedback, I sat here for ten minutes and tried to think of anything I ever got from Microsoft that functions as it was supposed to. I could only come up with two... the version of MS Basic that my Commodore 64 used when I was ten years old, and the sleeve that my XP disc arrived in... not the disc, mind you, but the sleeve. Anybody that thinks Microsoft is doing this out of the kindness of their hearts is either very very niave, or a complete moron.

Scott report abuse vote down vote up Votes: +0

wonder if...

Jul 05, 2007 23:40     

I wonder if the warranty excludes anything. In Aust all DVD players have at least a 12 warranty but often the laser is covered for a lessor time period. If it doesn't exclude anything then its pretty good. Also when the machine is in repair, does the time on the warranty pause or keep ticking? Could also be good for the gaming industry as a whole, because chipping a console voids warranty. So a longer time period for ppl to keep their machine under warranty should help to boost legal game sales. More sales = more profit = more investors jumping on board. Which should bring more games, and better games through competition. (though this is only xbox360 so this will still be a smaller boost).

Jay report abuse vote down vote up Votes: +0

Just buy the damn thing at your local Costco, and r...

Jul 06, 2007 06:02     

Just buy the damn thing at your local Costco, and return it for a full refund if it busts. Simple!
AL report abuse vote down vote up Votes: +0

I had 3 PS2 is in one year.

Jul 06, 2007 07:32     

All consoles are made cheaply. Even the PS3 has had drive failures already. I haven't heard about wii problems but I'm sure there are some. You always have to wait for rev 2 hardware to get a reliable console 1) because companies like to make money and 2) people want the console as soon as it's announced so they rush them out the door and fix the issues later. It's just the way the console and consumer electronic market is. If it makes anyone fell better my brother is still using his launch day 360 without any issues.

James Jones report abuse vote down vote up Votes: +0

Bout time

Jul 06, 2007 08:21     

Yep, just spent $139.00 to get mine repaired because of the hardware failure at 14 months of ownership. It's about to time you heard the popping sound of them pulling their head from their rear. I hope they make good on the promise of paying back repairs fees. Better late than never.
JayRod report abuse vote down vote up Votes: +0

Good ol' Microsoft

Jul 06, 2007 16:46     

Microsoft is known for faulty hardware. No console is safe either. I have been through 3 PS2 and god knows how many times XP has given me a headache. Hell I just got a copy of vista and that aint all its cracked up to be ethier. I'm glad to hear about a 3 year warranty because that may inspire other companies(::cough::Sony!::cough::) to extend warranties as well. Because as we all known Microsoft and Sony will rush hardware just to make a quick buck, and once it takes a shit your SOL. I acctually had to pay to have my PS2 repaired at the Sony Metreon and I lived in San fransico(i had to pay no shipping)! Everyone just keep your fingers crossed! Happy gaming!

GT-R Junkie report abuse vote down vote up Votes: +0

Any idea if Best Buy will refund 3 year extended wa...

Jul 07, 2007 02:50     

Any idea if Best Buy will refund 3 year extended warranty they sold (pressed) me when I bought before last Christmas?
J C report abuse vote down vote up Votes: +0

Luck of Draw...

Jul 09, 2007 17:32     

I personallydon't know of anyone who's gotten the dreaded ring (cross my fingers). At this point, they HAVE to know what's causing it, otherwise, they have the worst engineers in the world...
Hiruu report abuse vote down vote up Votes: +0

Refund!

Jul 09, 2007 17:34     

Heck, do I get my REFUND from Microsoft for the 3-year warranty I bought? If not, I'm gonna be pissed off...
Hiruu report abuse vote down vote up Votes: +0

Better than Apple

Jul 10, 2007 11:06     

At least MS is taking responsibility for it's design flaws, unlike Apple.
noname report abuse vote down vote up Votes: +0

red rings

Jan 10, 2008 01:29     

Number 2 died today, so I'm going to get another refurb. And somehow I get the feeling in a couple of month I call customer service again. Lifespan of the 360's I had so far about 7 month.
Frank report abuse vote down vote up Votes: +0