MSFT acknowledges XBox 360 issues and ups the XBox 360 Warranty

Michael Gartenberg | July 05, 2007, 04:30 PM

Just got off a call with Peter Moore over at the XBox group at Microsoft who is reporting that the Xbox 360 failure rate has been an issue for them. They've upped the warranty coverage to extend for three years for any console issue that has the dreaded three red lights of death and will reimburse anyone who's paid for repairs already. They're taking up to a 1.5b charge against earnings as a result.

That's a good move for them and it's an important step to take. Nice to see company owning up to issues and taking responsibility for them although at this cost, it's certainly painful, even for MSFT.

There's been a lot of changes in this console cycle and we just posted our console games forecast (see it here) and the results are going to surprise a few folks. We'll put out a formal press release on Monday and of course, I'll be available to discuss the results for clients and press.