Finally, a big corporation pays for their greed!

Right off the bat I want to say that I'm absolutely stunned that MS is offering a full 3 year warranty now for 3 red rings of death, the main hardware failure cause that's plauged a whopping 30% of 360 consoles. It's going to cost them 1 BILLION for all the repairs and it serves them right. It's about time a company finally fessed up to their mistakes.

Although this is very honorable gesture on MS part, let's not forget that had they designed the system properly and had not offered that initial pathetic 90 day warranty, customers and MS would not be in this mess they're in now. The hardware failure rate is dreadful but MS is not the only company putting out faulty hardware. We've seen for some time now the growing trend of system "updates" and "patches" to fix software problems even on consoles.

I sincerely hope that this costly mistake makes waves throughout the industry to make company's realize that being too cheap could come back to haunt you. The Xbox 360 is a very expensive system with overpriced games and accessories and I think MS realizes they ripped a lot of people off. It is really good to see them take the matter under control. Their future success depends on how they handle the issue.

I think MS realizes they ripped a lot of people off. It is really good to see them take the matter under control. Their future success depends on how they handle the issue.CaptainCrazy

Ripped alot of people off? How long did it take them to even make a profit on the consoles? (I honestly don't know, but I thought they were losing money for a while)

There are a lot of threads about this already. A lot. I should get used to it I guess, it's going to be the biggest news pre-E3.

You guys think this is a joke. From an economist stand-point. Microsoft will not be able to keep producing the 360 console if they are losing Billions. The company will eventually cut its loses and discontinue their 360 project.

They will be able to produce in the short-run, but have to shutdown in the long-run

You guys think this is a joke. From an economist stand-point. Microsoft will not be able to keep producing the 360 console if they are losing Billions. The company will eventually cut its loses and discontinue their 360 project.

They will be able to produce in the short-run, but have to shutdown in the long-run

JohnWinger

Hahaha, you think one billion is gonna sink Microsoft's attempts at controlling the console gaming industry? Again, ahahaha.

You guys think this is a joke. From an economist stand-point. Microsoft will not be able to keep producing the 360 console if they are losing Billions. The company will eventually cut its loses and discontinue their 360 project.

They will be able to produce in the short-run, but have to shutdown in the long-run

JohnWinger

Nah. All they have to do is fix the flaws with the X-clamp, processor, and RAM, and they'll stop their losses. While they are going to lose a lot of money doing this, in the long run its the best choice. Their sales are going to take a big hit without this new warranty (if they haven't already) and once that happens 3rd party publishers aren't going to make as many games for the 360, which translates to lots of lost money for microsoft (since they lose money on every console sold. all their profits come from the licenses they sell to publishers to put games on the system). Similarly, stopping production of the 360 altogether would murder their console division, since it means they'd still have lost all the money on repairs and reimbursements and wouldn't be getting any money back from 3rd party publishers since no one is going to make a game for a discontinued system (at least anything that would get decent sales). Furthermore, without fixing the problem their reputation would be completely shot and thus any future console endevors would be impossible.

There are a lot of threads about this already. A lot. I should get used to it I guess, it's going to be the biggest news pre-E3.

SpigleyMcCheese

yea it already is

You guys think this is a joke. From an economist stand-point. Microsoft will not be able to keep producing the 360 console if they are losing Billions. The company will eventually cut its loses and discontinue their 360 project.

They will be able to produce in the short-run, but have to shutdown in the long-run

JohnWinger

:lol: Wow! Just wow!

You guys think this is a joke. From an economist stand-point. Microsoft will not be able to keep producing the 360 console if they are losing Billions. The company will eventually cut its loses and discontinue their 360 project.

They will be able to produce in the short-run, but have to shutdown in the long-run JohnWinger

Your Ignorance is Bliss I suppose....

You guys think this is a joke. From an economist stand-point. Microsoft will not be able to keep producing the 360 console if they are losing Billions. The company will eventually cut its loses and discontinue their 360 project.

They will be able to produce in the short-run, but have to shutdown in the long-run

JohnWinger

Only one console has made money on its hardware, and that's the Wii. The VAST majority of income comes from software.

Right off the bat I want to say that I'm absolutely stunned that MS is offering a full 3 year warranty now for 3 red rings of death, the main hardware failure cause that's plauged a whopping 30% of 360 consoles. It's going to cost them 1 BILLION for all the repairs and it serves them right. It's about time a company finally fessed up to their mistakes.

Although this is very honorable gesture on MS part, let's not forget that had they designed the system properly and had not offered that initial pathetic 90 day warranty, customers and MS would not be in this mess they're in now. The hardware failure rate is dreadful but MS is not the only company putting out faulty hardware. We've seen for some time now the growing trend of system "updates" and "patches" to fix software problems even on consoles.

I sincerely hope that this costly mistake makes waves throughout the industry to make company's realize that being too cheap could come back to haunt you. The Xbox 360 is a very expensive system with overpriced games and accessories and I think MS realizes they ripped a lot of people off. It is really good to see them take the matter under control. Their future success depends on how they handle the issue.

CaptainCrazy

Obvious Sony Fanboy...LOL. I don't guess Sony has ever done anything like that. Oh wait, let's see. Hum....first there was my original PlayStation that I had to turn upside down before it would even play a game. Then there were the disc read errors on my launch day PS2.

Did I ever see Sony offer to extend it's warranty on any of it's consoles? I don't think so. So I guess Sony is a greedy giant too since they obviously release their defective systems too early? At least M$ is showing some love to its loyal fan base. And as a matter of fact, I have had no problems with my 360.

Come on Fanboys (not just the Sony ones either).....just shell out the money for all the consoles and you will find out that there are great games on all systems. And for all of you that think I am a Microsoft fanboy...I guess everyone is entitled to their own opinion (and yes, I do own a PS3).

[QUOTE="SpigleyMcCheese"]

There are a lot of threads about this already. A lot. I should get used to it I guess, it's going to be the biggest news pre-E3.

CaUs3

yea it already is

yea, they should make a sticky :)

I have the launch console and is still running smooth. If you don't like MS, then don't play and sell the damn 360 and stop complaining or start your own gaming company and take a 1 billion loss the first year.Because of 360, I have had a blast playing Games.

THANK YOU MICROSOFT.

Microsoft is an enormous multinational corporation. Financially-speaking, the 360 is like a side project for them. That's not to say they enjoy wiping their asses with billions, but let's just say it wouldn't be easy for the 360 to sink them. Especially also not since it's sold quite well.

[QUOTE="CaptainCrazy"]I think MS realizes they ripped a lot of people off. It is really good to see them take the matter under control. Their future success depends on how they handle the issue.Packt

Ripped alot of people off? How long did it take them to even make a profit on the consoles? (I honestly don't know, but I thought they were losing money for a while)

yea, theyve been ripping us off, 100 dollars for a HDD? 100 dollars for a wifi adapter? 200 dollars for HD DVD?

[QUOTE="CaptainCrazy"]I think MS realizes they ripped a lot of people off. It is really good to see them take the matter under control. Their future success depends on how they handle the issue.Packt

Ripped alot of people off? How long did it take them to even make a profit on the consoles? (I honestly don't know, but I thought they were losing money for a while)

Yes that's right, they sure are ripping us off, in fact now they are ripping themselves off because if you thought selling hardware at a loss is crazy (which is pretty normal in the gaming industry), then taking a loss on hardware that also has a huge failure rate and extending your warranty is even more ludicrous! But like I said, it's good they are obsorbing the cost of their mistake, not the consumer. I sure hope everyone gets their refund that deserves it.

[QUOTE="Packt"][QUOTE="CaptainCrazy"]I think MS realizes they ripped a lot of people off. It is really good to see them take the matter under control. Their future success depends on how they handle the issue.wii60_lukatoll

Ripped alot of people off? How long did it take them to even make a profit on the consoles? (I honestly don't know, but I thought they were losing money for a while)

yea, theyve been ripping us off, 100 dollars for a HDD? 100 dollars for a wifi adapter? 200 dollars for HD DVD?

ahh, you know if you buy the premium you dont have to buy any of them to play what the 360 was really made for, PLAYING GAMES!!!