Xbox 360 warranty extended to three years

In a monumental move for Xbox 360 owners everywhere, Microsoft has expanded its warranty coverage to three years, and will take a $1.05 billion to $1.15 billion charge to earnings for anticipated repair costs on the malfunctioning consoles. The company had previously extended the 90 day warranty to one year, but this move comes with a clear acknowledgment of the persistent problems with many of its systems (specifically the red ring of death), and an offer to reimburse users who have already paid for repairs to their consoles. It would appear that this development signals Remond's concession that these problems are not "routine" (a stance it has been lacking as of late), and happily demonstrates that they will do more than just add a few heatsinks to the troubled console. With the recent news that the Xbox 360 has a reported 33 percent failure rate, this should be welcome relief for literally scores of gamers.

Update - read the official statement from Microsoft here, and listen to this interview with Peter Moore on the decision.

[Thanks to everyone who sent this in]

[arthur barnhouse @ Jul 5th 2007 5:37PM]

Good for Microsoft. It took them a while to do the right thing, but it should always be recognized when a company does do the right thing.

[Frankenstein Black @ Jul 5th 2007 7:50PM]

While we applaud MS for this move, "the right thing" to do would have been to build a more reliable product out of the gate! Are PS3 having these amount of troubles? Exactly! The only thing gimping the PS3 is the price point. And guess what, the PS2 is still selling well, which means azz loads of "fence sitters" have not yet committed to next gen. Bite the bullet Kaz and Howie, you know what you have to do (i.e. price drop ;^)...

[muddafutta @ Jul 5th 2007 10:37PM]

While I agree that it is good Microsoft is doing the right thing they should also fess up just what the design flaw is. The xbox 360 owners have been talking for awhile about this and Microsoft's attitude has been its not an issue, as if all these people are idiots. I'm glad they are taking care of everyone, but they should have stepped up to the plate sooner.

I still use the original Xbox and was about to jump in to this generation with the 360 as it has most of the games I like. I might wait awhile now and see if this get corrected with the 65nm Revision. I just dont want to deal with repair issues.

[Paul @ Jul 5th 2007 5:37PM]

They should focus more on fixing the actual problems than just increasing the warranty.

[Clayj @ Jul 5th 2007 5:42PM]

Well, the rumor is (from photos I have seen) that new 360s have expanded heat sinks and better cooling... so I would guess that Microsoft is doing something about the problem.

As far as extending the warranty to 3 years go, this is an awesome move on their part. Also awesome is that they are going to refund any repair charges that people might have already paid. Sure, in an ideal world stuff wouldn't ever break for any reason; but what Microsoft is doing is the next best thing.

[LJKelley @ Jul 5th 2007 5:37PM]

Totally glad I bought the 360 :) Regardless of faults (mine is totally fine), Microsoft is now standing firmly behind their products.

[Roberto @ Jul 5th 2007 5:47PM]

Firmly? They denied the problem existed. How quickly we forget. I own a 360, I think they should have stood behind it from the get go.

[arthur barnhouse @ Jul 5th 2007 5:54PM]

Roberto, I don't suppose you're familiar with the expression: "Better late than never?"

Yes they should have admitted the problem from the get-go. They admitted it now, and are trying to heal old wounds. Seems like a peaceable agreement to me.

[JustinD @ Jul 5th 2007 9:21PM]

I'd have to totally disagree Roberto. The could just have easily done nothing about it. I can't complain that they have extended the warranty and will give people their money back for previous repairs.

[Nando @ Jul 5th 2007 5:41PM]

Next year: Xbox 360 warranty extended to five years

[Apparatus @ Jul 5th 2007 5:42PM]

Failure rate of 33%? Yikes!

[JBDragon @ Jul 6th 2007 12:02AM]

It's not 33%, that's what some EBGames Employee said. Rumors just fly fast around the net.

[Mike @ Jul 6th 2007 1:38AM]

It may not be ACTUALLY as high as 33%, but the PERCEIVED rate of repairs is probably roughly somewhere in that range; there have just been way too many stories of people going through two or three Xbox 360's in less than a year, sometimes even more than that. Too many stories like that and it's no wonder people aren't going to believe a product is reliable. It is the perceived rate of repairs that mostly influences people in their purchasing decision (among other factors).

[humpty @ Jul 5th 2007 5:43PM]

HOLY FOCK!

$1,000,000,000.00 USD to repair xbox 360s ...

Heads at MS Gaming are gonna roll.

[Ice Cold @ Jul 5th 2007 5:43PM]

1.15 Billion Dollar cost is ALOT Cheaper that the Mandatory Federal Recall they will soon be facing Goodbye.

[Colin @ Jul 5th 2007 5:44PM]

what about us early adopters whose xbox's lasted until just recently?

[ericdrum @ Jul 6th 2007 9:54AM]

You get your money back.

[Dan @ Jul 5th 2007 5:44PM]

When was the last time you saw another company do this? Has this ever happened before?

I applaud.

[humpty @ Jul 5th 2007 5:46PM]

Extending your warranty from 90 days to 3 years .. means you have ZERO confidence in your product. What other consumer electronic device has a 3 year warranty?

[js @ Jul 5th 2007 5:55PM]

some Fujitsu notebooks, LG S1/T1 notebooks, some Lenovo notebooks, LCD monitors? Also, I doubt all these products have 33% failure rates.

[cmonkey @ Jul 5th 2007 5:59PM]

humpty, actually, on most products, a 3 year warrenty implys that the manufacturer is confident it will last for 3 years without needing repair/replacement.

In this case, I suppose it means that Microsoft is extending some good will to its customers, and that they feel they have resolved the common problems (improved GPU cooling, a new DVD drive OEM, etc).

[Owen V @ Jul 5th 2007 6:00PM]

@ Humpty

usually a longer warranty means companies have MORE confidence in their product. not in this case because of the obvious problems with the console but in general longer warranties usually mean better product.

[zargon @ Jul 5th 2007 6:07PM]

"Extending your warranty from 90 days to 3 years .. means you have ZERO confidence in your product. What other consumer electronic device has a 3 year warranty?"

Bryston's faxtory warranty on their amps is 20 years...

[Neebs @ Jul 5th 2007 7:05PM]

Most brands of RAM has lifetime warranties.

[Alex Padilla @ Jul 5th 2007 5:50PM]

J Allard is going to get his ass kicked by Bill Gates and Robbie Bach.

PS-->J Allard was the lead designer and engineer of the 360

[muddafutta @ Jul 5th 2007 10:31PM]

I hear that. A design flaw has cost the company over a billion dollars so some heads are definitely gonna roll.

[Ice Cold @ Jul 5th 2007 5:50PM]

Remember that Engineer Old Guy featured in the Xbox 360 making of video that comes with every 360 he is now out of job. Along with half the people you see in that video


I wonder how long Major Nelson can avoid talking about this and keep the 1 ounce of credibility he has left

I would Prefer that the Federal Government issues a Mandatory Recall for all 360's

3 yeas means its a design engineering failure after 3 year it will FAIL probably 3 years to the day


my N64 NES and Super NES and Dreamcast Still work



I say Madatory Federal Recall will teach them a lesson as punishment for messing with gamers.

1.15 Billion they are getting off CHEAP


You Know the Xbox 720 or its Successor will fail just as bad unless the Government punishes Microsoft for messing with honest hard working Americans

[Robert @ Jul 5th 2007 5:51PM]

*Xbox Start up sound* "Hey This is MAX! So what are you calling about, you can say...."

[Thomas Granbois @ Jul 5th 2007 5:53PM]

this is great news... too bad when my xbox died in January, I was told too bad by Microsoft. So i promptly attempted the do it yourself fixes, which worked for a few weeks and then it finally gave up the ghost. Shortly thereafter Microsoft to their credit extended their warranty from 90 days to one year which would have covered my machine. I was very happy when i saw this, but when i contacted tech support (who had a record of my previous call) to see if i could be covered, they said too bad, you opened it up, now you have voided the warranty that did not exist at the time of the previously documented call.

I applaud Microsoft for doing this, but it is still frustrating for those of us who were left up shit creek without a paddle when they only had their ridiculous 90 warranty.

I am now a happy owner of a Playstation 3 and will not look back at the 360 (which by the way had a crap game selection for the first year as well)

[Ice Cold @ Jul 5th 2007 5:56PM]

The Xbox 360 was a Decepticon in the Transformers Movie Nuff said

Xbox 360 Failure Rate confirmed 100% after 3 years. its a Decepticon

Nominated for WORST Consumer Electronics product ever


WHAT ABOUT EVERYONE WHO's 360 Failed a while ago and they were out of WARRANTY!

well pay to get it fixed Microsoft will send you a check refund simple as that don't let it gather dust.

[Slackarena @ Jul 5th 2007 6:59PM]

to all of you who say this is a crap product due to issues- I have had mine since midnight on the day it launched, played it pretty frequently, and used it as my primary dvd player, and have had no problems whatsoever. ( I am knocking on wood feverishly as i write this). I think this is a great product that has had its fair share of problems, what what piece of electronics hasnt?


Riddle me that, Batman.

[trivialbass619 @ Jul 5th 2007 9:05PM]

Who are you, anyways? 100% failure rate? What is your problem?

I don't think the 360 was even part of the advertising scheme for the movie, let alone in it. The 360 hasn't even been out 3 years, and it definitely hasn't had a 100% failure rate, otherwise they would've long since been off shelves. And worst Consumer Electronics product ever? Far from it lol. And people who's 360s died after the 90-day warranty expired were covered when the changed it to a one-year warranty and made it retroactive, so long as they didn't open their 360 (can't blame MS for telling you not to open it, they don't want you messing around in there)

I think you're just an extreme MS hater. Personally, I'm not a fan of MS. I don't particularly like Windows. But I like the 360. True, it's had its share of problems, and it's taken them probably a bit too long to admit it. But like other people have said, better late than never. They've been putting better heatsinks and cooling components in the new 360s, and they still have a 3 year retroactive warranty now. So quit hating. Besides, it's doing better than the PS3 =P

[Mike Botros @ Jul 5th 2007 10:50PM]

There is a man carrying an Xbox360 Premium Box in transformers.

[trivialbass619 @ Jul 5th 2007 10:59PM]

Ah. My bad.

[PeteC @ Jul 5th 2007 5:57PM]

That's excellent. I've still not bought any of these next gen consoles and had been put off a little by the alleged failure rate having previously favoured the xbox360. This seems to put it back as the most likely although I still kind of Wii, I reckon an Elite with all it's media functions will end up being a better option.

[Adam @ Jul 5th 2007 5:57PM]

Even if failure rates are bad, Microsoft sticking by a product like this is outstanding.

[blah! @ Jul 5th 2007 5:57PM]

Good to see you trolls are still about at this hour... now how about GFY, GTFO.

This is great news for any 360 owner, and that means I'm now covered till the end of 2008. Result (and I've got a launch machine)!

Sucks for Microsoft to have to pony up $1Bn, but hey, if they hadn't had the thing so shoddily put together they might not be in this fix. And at least they're taking efforts to improve the reliability of it too.

The only real losers here, apart from MS, are the people who went and bought new machines because their original died and they didn't want to pay to have it repaired.

[Alex Padilla @ Jul 5th 2007 5:59PM]

ahh, yes, it was a Decepticon, I noticed that too! maybe that's why Microsoft is extending their warranty on the console, so that consumers don't think 360s are evil/trying to take over the world?

[Homeboy @ Jul 5th 2007 6:00PM]

Instead of increasing the warranty why don't MS just redesign the whole console. MS really overestimated the heat developed by the CPU and GPU.
I including many, laughed the first time we saw the PS3 because of it gigantic size. Now Sony are the ones laughing since they didn't compromise with the PS3 cooling at all. The PS3 has the biggest heat sink I have ever seen. It is almost as large as the PS-One.

[Ricardo Chavarria @ Jul 5th 2007 8:36PM]

They didn't compromise? Then why are all the PS3s off when you go to BestBuy, GameStop or EBGames? :D

I think this is a great move from MS's part. My 360 is still working great after more than a year, but this gives me confidence I will be able to use it without trouble (or paying for repairs).

Rock on MS.

[Revrant2394 @ Jul 5th 2007 6:01PM]

That'll do, pig, that'll do.

[ScOObyDoo @ Jul 5th 2007 6:03PM]

Nice move. Other companies would just deny deny deny, at least MS is sticking with us.

[SimbaDogg @ Jul 5th 2007 6:04PM]

@humpty

well, it could go either one of two ways 1) either its the hyundai/honda of the market (don't be so surprised that i said hyundai) and its built so well that people within the company are confident there are not going to be any problems w/in that warranty period. or 2) theres really just so many damn problems w/ the console, that anything less than that for a warranty, and people would feel kinda sketchy about buying their product. in this case, definitely #2...

but still, this is a victory to xbox fanboys everywhere...their beloved console will continue to get fixed for another two years

[Technology Research @ Jul 5th 2007 6:05PM]

DO I get a Refund? I paid 170 bucks for a gold service contract to give me a 3 year warranty! I will have my 170 bucks back MS please!

[Robert @ Jul 5th 2007 6:09PM]

Sorry you don't get that money back, because the new Warr. only covers General Hardware Failure.

[Robert @ Jul 5th 2007 6:17PM]

May I ask why this article has no link to the FAQ's about this? http://www.xbox.com/en-US/support/systemuse/xbox360/resources/warrantyfaq.htm

[Ice Cold @ Jul 5th 2007 6:18PM]

360=Decepticon

PS3=Autobot

Wii= The Allspark

[FermitTheKrog @ Jul 6th 2007 8:35AM]

Ice Cold = complete and utter tool

[adr @ Jul 5th 2007 6:22PM]

wow, this comes up and its all roses for Microsoft. All is forgiven for making a shoddy product. If Sony did this there would be 100 posts of how arrogant they are as a company and how they let down millions of gamers and never should have needed a 3 year warranty. But microsoft does it and its ok. I can have my 360 break 5 times over the next 3 years and its ok since its under warranty, wow Xbox owners sure are in love with the product. It doesn't matter how many good games there are for the console if you can't play them because you have a broken box.

At $1billion cost of warranty replacement that comes close to 2.5 million consoles that will need to be replaced over the next 3 years. Thats close to a healty 25% of sold units. Most likely it will end up costing Microsoft more. There goes any chance of the Xbox division of turning a profit anytime soon.

This move was probably neccesitated by the EU which was probably going to issue a mandatory recall. News like this would kill the system so Microsoft extended the warranty to try to get away from a recall. Even so I expect a system to last longer than three years, what happens when it breaks after that point. Extending a warranty is not a fix to a major manufacturing problem.

The reason why electronics warranties are 90 days to one year is because if there is a manufacturing defect in an electronic component it will fail within the first 30-60 days 90% of the time. If you have a 3 year warranty it means the company is fairly certain they won't have to replace the product. If they thought 25-30% were going to die there would never be a 3 year warranty on it. Most of the failing 360's all happenned within a year of purchase and the extension of the warranty is just a band aid. It won't prevent failures and in this case Microsoft is almost tellign you your box is going to fail within three years but at least you can get a replacement.

It reminds me of people who kept on buying 1980's Porches. How many mile you got on that thing? 30,000 but I've had to replace the head gasket 3 times already but its a great car, wanna go for a ride.

[Robert @ Jul 5th 2007 6:22PM]

Ice Cold (You) = Annoying