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Xbox 360 Repairs Will Cost Microsoft $1B
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Microsoft to Take $1 Billion Charge for Xbox 360 Warranty ExtensionSEATTLE (AP) --
In another setback forMicrosoft Corp.'s unprofitable entertainment and devices division, thecompany says it is planning to spend at least $1 billion to repair serious problems with its Xbox 360 video game console.
Microsoftdeclined to detail the problems that have caused anonslaught of"general hardware failures" in recent months but saidThursday it willextend the warranty on the consoles to three years.Theglitches, and thebad publicity, could weigh the company down as itclaws for market sharein the highly competitive console market. InMay, the Xbox 360 rankedNo. 2 in unit sales behind Nintendo's Wii, butstill beat out Sony'sPlaystation 3, according to data from NPD Group.
"Wedon't thinkwe've been getting the job done," said Robbie Bach,president ofMicrosoft's entertainment and devices division, which alsomakes theZune digital music player, a distant competitor to AppleInc.'spowerhouse iPod. "In the past few months, we have been having tomakeXbox 360 console repairs at a rate too high for our liking."
Bachsaidthe company made some manufacturing and production changes thatheexpects will reduce Xbox 360 hardware lockups, but he declinedtoidentify the problems or say which others might remain. Microsoftsaidit will record a charge of up to $1.15 billion for its fourthfiscalquarter, which ended June 30, to cover the additional costsassociatedwith the warranty extension.
The news comes just daysbefore thevideo game industry descends on Santa Monica, Calif., for itsannual E3conference, and it could overshadow Microsoft's plans to buildbuzz forholiday season video game releases and "Halo 3," amuch-anticipatedshoot-'em-up for the Xbox 360 set to launch inSeptember.
Thesoftware maker also said Thursday that sales of thegame console fellshort of expectations for the fiscal year that justended.
MattRosoff, an analyst at the independent research groupDirections onMicrosoft, estimates that Microsoft's entertainment anddevicesdivision has lost more than $6 billion since 2002.
Microsofthaswritten down larger amounts in the past -- more than $10 billion inthelate 1990s related to investments in telecommunications companies,andmore than $5 billion related to antitrust issues -- but a $1billionwrite-down for one division in one quarter is significant.
"It suggests the problem is pretty widespread," Rosoff said.
Microsoft will pay for shipping and repairs for three years, worldwide, for consoles that experience hardware failure, which is usually indicatedby three flashing red lights on the front of the console, something gamers sometimes refer to as "the red ring of death."
This isn'tthefirst time Microsoft has made changes to the Xbox 360 repair plan.LastDecember, the company extended the warranty from 90 days to oneyear forU.S. customers. In Europe, the warranty previously expiredafter twoyears.
Microsoft also will reimburse the "small number"of Xbox 360owners who have paid for shipping and repairs onout-of-warrantyconsoles, Bach said.
In June, bloggers speculatedthat the Xbox360 return problem was getting so severe that the company was runningout of "coffins," or special return-shipping boxesMicrosoft provides togamers with dead consoles. "We'll make sure wehave plenty of boxes togo back and forth," Bach said in an interview.
ChrisLiddell,Microsoft's chief financial officer, said in a conference call that thecompany sold 11.6 million Xbox 360 consoles since the product'sNovember 2005 launch, missing a target for 12 million unitsby the endof the fiscal year.
Xbox 360 prices range from $299 to $479, depending on their configuration.
Microsoft'sentertainmentand devices division reported an operating loss of $315million on $929million in sales for the three-month period that endedin March.Microsoft has said it expects the division to post a profitin fiscal2008.
Microsoft announced the warranty extension aftermarkets closedThursday. Microsoft shares fell 11 cents to $29.88 inextended tradingafter falling 3 cents to $29.99 in the regular session.
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lagipun agak terkejut penjualannya tak mencapai target.. despite of diorang punya promotion mmg besar-besaran... ramai ke yg dah beli?? rosak pula tu..
[ Last edited by dianaris at 6-7-2007 01:22 PM ] |
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aku tidak akan berebut2 beli benda2 bermodel baru terutamanya PC, operating system, kereta, ....sebab benda2 tuh tidak berpeluang melalui ujian yg menyeluruh. Itulah sebab tak lama kemudian mrk akan keluarkan 2nd Edition ataupon Revised Edition selepas mengumpul feedback kelemahan 1st edition. |
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Originally posted by dwbh163 at 6-7-2007 01:49 PM 
aku tidak akan berebut2 beli benda2 bermodel baru terutamanya PC, operating system, kereta, ....sebab benda2 tuh tidak berpeluang melalui ujian yg menyeluruh. Itulah sebab tak lama kemudian mrk ...
Windows pun macam tu juga
Aku ni skg guna Windows Vista
kerap jugak buat hal ni...
sabo aje la...
Aku punya Ori tawww...
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Originally posted by dwbh163 at 6-7-2007 13:49
aku tidak akan berebut2 beli benda2 bermodel baru terutamanya PC, operating system, kereta, ....sebab benda2 tuh tidak berpeluang melalui ujian yg menyeluruh. Itulah sebab tak lama kemudian mrk ...
aku setuju tu.. terutama brg2 yg berkaitan dgn teknologi dan elektronik ni.. ujian terakhir adalah sambutan pembeli.. kalo takde sambutan pun, sekurang2nya company tu dpt feedback utk remodel balik brg2nya.. |
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Reply #3 cambaik's post
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sayangnya.. ori plak tu.. kalo ada edition baru, tunggu aje feedback pengguna2 awal.. |
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Reply #4 Kilokahn's post
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so far, console yg datang dari Jepun mcm PlayStation dgn Nintendo mmg bagus.. jarang rosak..kecuali kalo beli yg dah convert ataupun selalu sgt guna 24/7 sampai tak dpt rehat console box tu.. |
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Originally posted by cambaik at 6-7-2007 01:30 PM
Windows pun macam tu juga
Aku ni skg guna Windows Vista
kerap jugak buat hal ni...
sabo aje la...
Aku punya Ori tawww...
Pakai ler Linux Mandriva ..... lebih kurang macam Windows Vista gak .... |
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Originally posted by cambaik at 6-7-2007 01:30 PM
Windows pun macam tu juga
Aku ni skg guna Windows Vista
kerap jugak buat hal ni...
sabo aje la...
Aku punya Ori tawww...
Pakai ler Linux Mandriva ..... lebih kurang macam Windows Vista gak .... |
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Originally posted by Kilokahn at 6-7-2007 01:40 PM
nintendo wii la best.
Tak pernah try lagi ....
kalo PS3 dan Xbox 360 dah try .... |
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Reply #10 mahathirGX's post
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sesaper yg miliki xbox 360 ni ada masalah tak mcm yg dinyatakan di atas..?? |
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guys..
i am going to move this thread to
windows and other operating systems
cuz perhaps forum members that
frequently visit the board can
contribute about this issue more --
and get benefit more about this -
and i provided the link as well therefore
it will take you to the thread should you
wanna contribute in this matter -
thanks -
dex |
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walau mcm mana produk canggih kehebatannya bagus....Made in China tetap bagus 
takde dia game console takleh baca pirate cd...kena beli ori mahal2 nak buat apa membazir sajer |
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Originally posted by mahathirGX at 6-7-2007 04:56 PM 
Pakai ler Linux Mandriva ..... lebih kurang macam Windows Vista gak ....
tambah eyecandy COMPIZ FUSION
meleleh budak2 VISTA ngk
dah ler cun free plak tu buang jer vista tu |
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Post time 6-7-2007 01:17 PM
变色卡
Author
Post time 6-7-2007 08:58 PM
