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.
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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.