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Microsoft to increase Xbox 360 warranty to 3 years

By Blake Snow
July 05, 2007 14:56 PM PST
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Microsoft announced on Thursday that it will increase the warranty of the Xbox 360 from one to three years due to "an unacceptable number of repairs." The move is expected to cost the company more than $1 billion dollars for its most recent business quarter.

Xbox 360 warranty now for 3 years

The news comes amid mounting complaints of Xbox 360 failure rates according to Reuters and just days after a online report suggested that failure rates may be as high as 33%.

Without disclosing specifics, the company said "a number of factors" can cause the dreaded "red ring of death" on affected machines and as a result, the current one-year warranty would be extended to three years to cover the problem. Microsoft added that it would reimburse customers who had previously paid for repairs related to the three-flashing lights error message.

Details of the forthcoming 3-year warranty were not yet revealed as Microsoft was not immediately available for comment. Stay tuned.

UPDATE: Xbox President Peter Moore has offered the following apology in addition to details regarding the 3-year warranty: "If we have let any of you down in the experience you have had with your Xbox 360, we sincerely apologize. We are taking responsibility and are making these changes to ensure that every Xbox 360 owner continues to have a great experience. [The new warranty] will take a few days to roll out globally, and I appreciate your continued patience as we launch this program."

This is good news for gamers, bad news for Microsoft's bottom line. Nice to see the company finally own up to the red ring of death error, and I bet they're kicking themselves right now for outsourcing both their manufacturing and their design whereas most only opt for the former.