Microsoft Will Drop $1B on Xbox Warranties

Company calls number of defective consoles 'unacceptable'

By Sam Biddle, Newser Staff

Posted Jul 6, 2007 5:39 AM CDT

(Newser) – Microsoft will respond to complaints from around the world by extending the warranty on its faulty Xbox 360 gaming console, at a potential cost to the company of over $1 billion, USAToday reports. The company will extend warranty coverage from 1 year to 3 in response to buyer reports that hardware defects are causing their consoles' spontaneous demises.

Disgruntled gamers call the signal of abrupt system failure the "red ring of death" (a reference to the blinking lights on the console). Results for the fourth quarter, which ended June 30, will reflect the pretax charge. Microsoft's expensive admission of "an unacceptable number of repairs" didn't seem to faze investors: Its stock fell only 11 cents in after-hours trading.

[Images (7)]

[Videos (1)]

' (Associated Press)

CeBIT Computer Trade Fair Opens (Getty Images)

This undated handout photo provided by Microsoft Corp. shows a screen shot from the "Pac-Man Championship Edition" video game for the Microsoft Xbox 360 console. (AP Photo/Microsoft Corp.) (Associated Press)

Visitors play with the Xbox 360 from Microsoft at the CeBIT computer... (Getty Images (by Event))

This Microsoft handout photo shows Microsoft chairman and chief... (Getty Images)

E3 Expo Showcases Latest High-Tech Video Gaming Technology (Getty Images)

Computer Gaming Convention (Getty Images)

« Prev« Prev | Next »Next » Slideshow

The Xbox 360 "Red Ring of Death" (K0NY (YouTube))

View larger videos >>

« Prev« Prev | Next »Next »

To report an error on this story, notify our editors.

More Newser Stories

Your Next Cable Box: Xbox Live

Microsoft revamping service

(NEWSER) - The latest competition aiming to replace your cable box: Xbox Live. Microsoft is ramping up its online entertainment service starting tomorrow, allowing subscribers to watch a variety of television from their Xbox 360. In addition, rather than the tedious process of using a remote control to search for shows listed on a cable box program guide, Xbox Live users will be able to search with voice commands and hand gestures, if they also have a Kinect. Tomorrow, services that are already available to subscribers—including Netflix and Hulu Plus—will be available via the new retrieval system. More»

Interactive Porn Reaches Kinect

Gaming firm creates demo showing kinky XBox possibilities

(NEWSER) - It took them more than a month, but the adult gaming industry has managed to crack Kinect and use it for interactive porn. Sex simulation gaming company ThriXXX has released a demo showing how the motion-controlled gadget for Microsoft's XBox gaming system can be used for porn pleasure, ABC News reports. ThriXXX says its demo shows there's plenty of kinky possibilities with Kinect, although it doesn't have permission from Microsoft to create games, and its demo was created with help from hackers. More»

Nintendo Going 3D, Without Glasses

Handheld DS system will be upgraded eventually

(NEWSER) - Nintendo is planning to release a 3D version of its portable DS system, with one really intriguing twist: there won’t be any glasses. Dubbed the Nintendo 3DS, the company is calling the device the successor to the current DS series. Nintendo won’t reveal any more details until June, and some analysts questioned the timing of the announcement—the new DSi XL goes on sale Sunday, and some fear it could undercut sales. More»

Mom Calls Cops on Grand Theft Auto -Addled Teen

Boston police talk boy into shutting off PlayStation

(NEWSER) - A Boston teen's excessive video game playing caused his mom to call 911 this weekend. Angela Mejia awoke at 2:30am to find her son still playing Grand Theft Auto IV, so she unplugged his PlayStation. "I want to help my son, but I can’t find a way," lamented the stressed-out mom. The video-addled 14-year-old argued, so she called the cops, who managed to persuade the son to hit pause on his life of virtual crime. More»

Gaming Causes Joint Pain in Kids: Study

Child scientist finds 60+ minutes of daily play may cause trouble

(NEWSER) - The repetitive motions involved in playing video games cause joint pain in children, according to a new study by a true expert—an 11-year-old gamer. Deniz Ince, with the help of his rheumatologist dad, studied joint pain among his fellow video game enthusiasts, aged 7 to 12. More than an hour of play per day increased the chance of having pain by 50%, they found. Wii users reported more pain than users of the Xbox or Playstation, regardless of the length of play. More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website

Microsoft Will Drop $1B on Xbox Warranties