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Xbox Warranty Program Costs Microsoft One Billion Dollars

Complaints about the Xbox are not new on the internet. It seems that Microsoft has allocated funds to address some of the console problems:

“LOS ANGELES (Reuters) — Microsoft Corp. said Thursday said it would take a more than $1 billion charge to fix “an unacceptable number of repairs” to its Xbox 360 video game consoles and had missed shipment targets for the end of June.”

link: Xbox repairs cost Microsoft $1B

Microsoft is extending the warranty to three years due to the problems. No matter how large Microsoft is, an unexpected charge of a billion dollars ( and perhaps more ) is going to hurt its advances as a force in the hardware sector.

Catherine Forsythe

[tags]xbox, microsoft, repairs, warranty, hardware[/tags]

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