Microsoft to extend Xbox 360 warranty, take $1 billion hit

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No, it's real cost to MS

Lay off the tin foil Darby. The costs to MS are real. If the press reports are accurate they will have to replace about 1/3 of the shipped units. With 12M shipped, that's 4M to replace at about $250 each = $1B. They will also have to spend a significant amount to reengineer the failing component(s). This cost may not even be in the projected number.

MS is not doing this because of concern for the customer. They are doing it because they think it is cheaper than the cost of potential class action suits and loss of business if they don't. They are doing the right thing, but not out of altruism.

A cheap solution that doesn't work is neither,
(I use this tag line because I like it, but in this case it happens to be very apropos)
Say What?

Posted by: say_what   Posted on: 07/06/07 You are currently: a Guest | Members login | Terms of Use

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