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Microsoft Admits 3 Red Lights Unacceptable News
Chris Leyton
05/07/2007
Xbox 360 warranties extended to three years and repair costs reimbursed as Microsoft combats flagging image...
Dogged by criticisms surrounding the reliability of the Xbox 360 and under increased pressure from consumer watchdogs, Microsoft today announced an extension to its worldwide Xbox 360 warranty policy.
For the first time, Microsoft has admitted that the number of units that have suffered from the dreaded three flashing-lights is "unacceptable" and has identified a number of reasons behind the issue. Previously refusing to elaborate on any specific source, Microsoft maintains that it has identified a number of factors that can lead to the problem and has made improvements to the console as a result.
Taking full responsibility for the saga, Microsoft will repair faulty Xbox 360 units free of charge that display the problem within three years from the date of purchase. Microsoft will also retroactively reimburse consumers that have previously paid for repairs.
The change in policy is likely to lead to a $1.05-1.15 billion (£520-570 million) pre-tax charge to the US giant's earnings for the quarter ended June 30th 2007.
Further details can be found at www.xbox.com
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