Just now. That's some SERIOUS damage control. Let's hope they stop releasing high risk consoles from here on out, in addition to this...
3 year warranty? Retroactive reimbursement? That's practically unheard of.
[QUOTE="Ibacai"]Does this mean we won't see MS make any profit this year? What about a price drop for the 360?Raidea
With $1,000,000,000 added to their balance sheet, I seriously doubt any profit will be made.
Are you serious? REDMOND, Wash. — Apr. 26, 2007 — Microsoft Corp. today announced revenue of $14.40 billion for the quarter ended March 31, 2007, a 32% increase over the same period of the prior year. This revenue drove record profits with operating income of $6.59 billion and net income of $4.93 billion. Diluted earnings per share for the quarter grew 72% to $0.50, and included $0.02 in tax benefits and $0.01 in legal charges. Think they have room to wiggle ;) Where Sony does not: Sony also suffered its biggest quarterly loss for four years for the period from January to March 2007, with a net loss of JPY 67.6 billion (EUR 413m). Sony's Game division recorded a JPY 232.3 billion (EUR 1.4 bn) loss, primarily due to selling the PS3 lower than the manufacturing price, as well as the associated costs of the worldwide launch. Nintendo is doing GREAT: Nintendo also reported its earnings for the fiscal year that ended on March 31, although it chose not to break out its fourth quarter figures. The last fiscal year was very good to Nintendo. The company's profit soared 77 percent to ¥174.29 billion ($1.47 billion) on sales of ¥966.53 billion ($8.53 billion). That's a 90 percent increase, spurred by insane demand for the Wii and continued strong sales of the Nintendo DS. Using some highly-specialized math skills (calculator.app), we can learn that the fourth quarter rocked as well, with sales tripling over the same quarter last year. But as you can clearly see both Sony and Nintendo don't add up to MS profits. Just think of it as 20 BILLION dollars MS as NET profit. WOWOMG!!! YES! FINALLY!
*The_Game21x proceeds to run through the house screaming jubiantly*
I'm calling them first thing tomorrow and shipping my 360 back! :D
[QUOTE="Raidea"][QUOTE="Ibacai"]Does this mean we won't see MS make any profit this year? What about a price drop for the 360?Heil68
With $1,000,000,000 added to their balance sheet, I seriously doubt any profit will be made.
Are you serious? REDMOND, Wash. — Apr. 26, 2007 — Microsoft Corp. today announced revenue of $14.40 billion for the quarter ended March 31, 2007, a 32% increase over the same period of the prior year. This revenue drove record profits with operating income of $6.59 billion and net income of $4.93 billion. Diluted earnings per share for the quarter grew 72% to $0.50, and included $0.02 in tax benefits and $0.01 in legal charges. Think they have room to wiggle ;) I meant the entertainment section, sorry.Congrats. :P My friend will get back his 145 dollars or whatever it is.OMG!!! YES! FINALLY!
*The_Game21x proceeds to run through the house screaming jubiantly*
I'm calling them first thing tomorrow and shipping my 360 back! :D
The_Game21x
W00t! I laugh at the Best Buy employee who tried to sell me one of their warranties.TeufelhuhnBest buy :lol:
Just now. That's some SERIOUS damage control. Let's hope they stop releasing high risk consoles from here on out, in addition to this...
3 year warranty? Retroactive reimbursement? That's practically unheard of.
Jandurin
Indeed, but then again I've never seen a problem of this magnitude. I mean 30% failure rates? That's out of control.
Could this be a preemptive strike? Maybe MS heard of a brewing lawsuit that would have probably caused a 360 recall? Wild speculation, I know. Just food for thought.Ibacaiput that in system wars then see what happens:P.
[QUOTE="Ibacai"]Could this be a preemptive strike? Maybe MS heard of a brewing lawsuit that would have probably caused a 360 recall? Wild speculation, I know. Just food for thought.Unforgiven2870put that in system wars then see what happens:P.
[QUOTE="Heil68"][QUOTE="Raidea"][QUOTE="Ibacai"]Does this mean we won't see MS make any profit this year? What about a price drop for the 360?Ibacai
With $1,000,000,000 added to their balance sheet, I seriously doubt any profit will be made.
Are you serious?Think they have room to wiggle ;)
I meant the entertainment section, sorry.As did I.
The rest of MS is pretty solid.
Okay, I found some words :P
I think Microsoft Games Division has tried from Day 1 to establish a reputation as a company that was connected with and cared for its consumer. They've built up this image much more successfully than, say, SCEA.
This changes my entire outlook of Microsoft going into E3. The hardware problem is really their Achilles' heel, and hiding it would have dampened all their upbeat talk at next week's event. Coming out in the open about it and being willing to sustain such heavy losses shows that Microsoft Games is serious about maintaining its reputation as a consumer-centric company.
The new warantee really enhances my peace of mind as a consumer. And I'll be much more receptive to Microsoft's announcements next week, knowing that they are staying true to the reputation they originally built up.
I was at work and read it as it broke on CNN Money. Wished I could have been here to post it on SW.
I am very impressed by this, and I think that it is what Microsoft needed to do to show that they took the problems serious and they intended to stand behind the 360. They got my respect back with this move. Very classy, and more than they really were obligated to (seriously, I doubt any other company would have done something like this), and it wasn't a cheap move for them to make.
Much respect for any company that mans up and admits their flaws and fixes them and does right by the customers.
I said time and again, the fact that they admitted no issues was what made me mad, and not the hardware failures. Now they cleared that up, and I respect that.
Now I got to call them and see whats up with the $60 I paid them for the two year warranty (which is now incorporated in the free 3 year warranty)!
Why don't they just admit the hardware problems and fix them?foxhound_fox
They did. Moore and Bach both said in the conference call (and subsequent interviews) that MS investigated and found a few hardware flaws that contributed and that they had put fixes into place.
Could this be a preemptive strike? Maybe MS heard of a brewing lawsuit that would have probably caused a 360 recall? Wild speculation, I know. Just food for thought.Ibacai
They are already being sued in a class action lawsuit (at least one, possibly more). This is not a strike against that, IMO, but them manning up and covering the largest (and most visible) flaw in their system. The red rings were one thing that was bringing the system down hard. With this fix and warranty, the 360 could begin to move forward as a solid system with high consumer confidence.
Why don't they just admit the hardware problems and fix them?foxhound_fox
Honestly if MS had actually done some tests with the 360 when they were making them before launchthis problem would have never happened.
kage_53
Most flawed units have taken over a year to show signs of issues. It would not have been caught in QC checks since no company tests units for years. There just isn't time to do that much QC work. If the systems turn on and boot, they are considered tested.
MS has realized the flaws, and has done what they can to make it right. That is the most you could ever expect from a consumer electronics company.
This is superb news. My 360 breathes easier now.
Oh and remember next time you see one of those feature price comparison threads to add in the cost of a 3 year warranty:P
A Q&A with Peter Moore recently went up at Gamespot about the recent warranty extension. He refuses to specifically identify what it is that is causing failures in 360s, but he says that Microsoft has done a lot of research into what the problems were specifically, and is taking steps to address them in their new units.
Good on Microsoft. It's great that they're willing to take the steps to solve this problem, and show people that they care. It's an expensive solution, but it will put a lot of minds at ease, and placate Xbox fans who had been angered by hardware failure. It's probably worth it in the end.
This also makes me much less worried about my console.
After hearing this news, I now feel a lot less hesitant about buying any model of Xbox 360 hardware. Unfortunately though, they will probably continue to break at the same pace as they always have, at least until the new 65nm chips solve the problems. I'm happy that Microsoft has finally acknowledged they have a problem on their hands and are now trying to rectify their mistakes. I can't say i'm too chuffed about all the hassle this has caused, but it's at least a big step in the right direction.
Honestly if MS had actually done some tests with the 360 when they were making them before launchthis problem would have never happened.
kage_53
Yup, I think you're right.
In the end though, this is a learning curve for MS in the console market. Hopefully they won't make the same mistake with their next console.
Oh snap I just became a RADIANT SILVERGUN
Here's footage of me dating myself: I remember when Radiant Silvergun debuted in Japanese arcades, it was a featurette in EGM... the paper version. You know, before internet. Before EGM began to suck really bad. Waaaay before it built itself up to be 1Up.com which is, fortunately, quite good, even if the reviews are dodgy.
Good for Microsoft. I expect that means my 2 year extended warranty will take me through 2010. I can't imagine needing to use it before then. maybe next time they'll get good hardware testers to check their designs out before losing billions just on repairs and service.Dreams-Visions
Nope, Your 2 year warrenty is refunded, Expect your $90 back in due time.
Yeah my respect for these guys has gone up quite a bit now. I like playing games on the 360, the live service but hate all these problems.
For MS to admit to their mistakes and take action is a good step. Now they just need to stop these problems happening in the first place but those new chips might help.
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