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Microsoft Responds to Warranty Report

Responding to a report issued this week by an independent warranty firm indicating that the Xbox 360 has a 16.4 percent failure rate, Microsoft said today that company officials have not seen the report but question its validity.

Yesterday, warranty issuer SquareTrade revealed the results of its recent examination of Xbox 360 failure rates. The company said that, based on a sample group of 1,000 warrantees it had issued, 16.4 percent had service calls -- more than half for general hardware failures (a.k.a. Three Red Lights) and the rest for disk drive problems, hardware freezes and other issues.

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uk.xbox360.ign.com
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BenzMoney3504d ago

I bought a console on launch day, and it RRoD'd on me in Feb/06, a few mere days before its original 90-day warranty expired. MS replaced that console with a new one (fast turnaround since at the time they were over-nighting everything). When I got my new console, I decided to buy the 2 year extended warranty just in case... only to have Microsoft then go and extend the RRoD warranty to 3 years. Essentially, I wasted the money on that warranty.

Anyways, my 2nd console seemed to work great. Never had a problem with it. Until this past Sunday. I came home from a weekend trip and felt like playing some Halo. Well, my 360 disagreed with me and RRoD'd. Crap. 1-800-4MY-XBOX and they're shipping me a coffin. However, it is no longer overnight. I should receive the box next week, then I ship it off to them. There's goes another week. Finally they'll ship me back my replacement, and I'll receive it another week later. A month without my 360. And what do I get in return? 1 month free Xbox live. I'm sorry - it's not really free since I'm paying for this month but have no way of using it. So they're basically 'reimbursing' me for a month of unused subscription.

Am I mad? Yeah, I'm mad. Is it 'acceptable'? No. It's not. I've been a LIVE subscriber since the month it came out. I remember playing Ghost Recon 1 on LIVE - it sure as hell isn't acceptable to me! But... that doesn't mean I'm not going to welcome back my replacement console with open arms.

Despite the hardware problems, the inconvenience, etc, the 360 just has what I want. The games, the online, the games & most importantly, the games! It has what the competition doesn't. I don't have interest in a PS3 nor do I have interest in the Wii. At least not yet.

Some people say I should buy a new 360 and sell my replacement one when I get it back. Nope. I refuse to spend more money on a console that shouldn't have broken down in the first place, let alone twice. But I'm sure as hell not going to give it up completely, like so many other people suggest I should.

Si-Pie3504d ago

Yeah got to agree with you! My Launch console RRoD on me back in september last year so am on my 2nd console now. The 360 has some fantastic games out for it and quite a few games that are exclusively out for it like Test Drive unlimited and games like that and xbox live i couldnt be without. But its just a shame its just such unreliable hardware! Think ive been lucky to only be on my 2nd machine but im starting to have trouble with the DVD drive now as on certain games i get the dirty disc error on clean discs. It isnt acceptable and microsoft really need to lift their game and give us quality hardware!

CrazzyMan3504d ago

Your money, Your time.
If You can stand all these issues, good for you. =)

Enjoy gaming.

BUT, i understand those people who advice you to leave x360, in reality WE shouldn`t SUPPORT crappy hardware. But it`s how it is.
M$ has low sales on x360 worldwide mainly because of the rrod.
I mean, it`s a MICROSOFT 65 bln. $ company, and after 2 YEARS they couldn`t do NOTHING about RROD? WTF?!

Atleast Jaspar is finally coming somewhere in summer, with 65n cpu and gpu, maybe that model won`t have issues and people will able safely buy a consoel, which will work even after 5 years. =)

XxZxX3504d ago

you need an award for most patience consumer. Microsoft should really take care of this kind of die-hard consumer.

Bill Gates3504d ago

Bro you're like the wives that like to get abused. It's just sad. You keep taking a beating, but yet you keep coming back for more.

It's no wonder M$ doesn't care about fixing the problem. If people like you don't stand up, and start not supporting them, than maybe they would fix the problem. But so long as people like you and others still continue to "deal" with the problem, than they just wont care to fix it.

I think you'll learn your lesson after you're on your third, or fourth. But then again maybe not.

hahahabutt3504d ago

I wonder how much the failure rate for the PS2 was with the defected lasers??? Nobody seemed to care back then..

lodossrage3503d ago

The ps2 had about 120 million owners over the course of 8 years. So the failure rate was considerably low due to the amount of owners. It was about 22%

The 360 currently only has about 17 million over the course of 2 years. So even if their failure rate dropped from 33%+ to around 16%, it is still VERY high a failure rate.

And also, people weren't AS big on picking sides in console wars back then either. Which could be another reason why nobody seemed to care back then.

Si-Pie3503d ago

Hey I dont think hes taking a beating! If like me then hes only ever bought one 360 and one only. Like me his first console went wrong (yes it shouldn't happen and its just not acceptable) but it cost me nothing to send back and get a new one just the inconvenience. Its costing microsoft to send me a brand new console (console was 3 weeks old when I got it back) but its cost me nothing just the time. Yeah so what I was without it for 3 weeks I didn't care because I have a life apart from video games and only spend max 5 hours a week on it. But if Sony had a equivalent to Xbox live and had Test Drive Unlimited, Bioshock etc on it then id abandon xbox tomorrow for PS3. Having said that I do plan on getting a PS3 this year to sit along side my 360 and wii.

dantesparda3503d ago

I had the same thing happen to mine (died just a little bit before the 90-day warranty was up, and mine was also a Nov. 22, 05 launch unit). And my replacement lasted a 1 yr & 3 months after that, then that died. and i was out of the newer 1-yr warranty. Then luckily MS did the 3 yr warranty. Giving me my 4th 360, but now i am on my fourth system and that's just too many times, i mean come on!, Im sick of doing all the things you described about the ordeal (but you forgot to mention that you have to also bring it to UPS yourself). And i am really quite sick of dealing with it. Everybody on my friends list has had their 360 die on them AT LEAST once, if not more! and i have 91 people on my friends list. And that's not counting the 4 other real friends that have all had theirs break. That's 100% right there. As far as i am concerned. THEY ARE ALL RED RINGING. But its true that as long as MS keeps on repairing them for free I'll just keep getting them. But the minute it doesnt and it breaks down, that's it. No more 360 for me

+ Show (5) more repliesLast reply 3503d ago
wageslave3504d ago

What is *SUPER* interesting is that last bit:

"16.4 percent had service calls -- more than half for general hardware failures (a.k.a. Three Red Lights) and the rest for disk drive problems, hardware freezes and other issues."

So, here we have an actual warranty company release real data -- not that internet-urban-legend made-up nonsense.

So, 16% had *SERVICE CALLS*. More than half had heat-failure. BUT that 16% includes "hardware freezes and other issues" which could be anything (including a great portion of user error (cable unplugged kind of stuff)).

--

So, we now have two numbers. MS's 3-5% number. And this one (lets guess a CLAIM of around 10%)

*AND* MS takes the time to publicly address this and say "no, we doubt it". Why or how could they make such a claim? Becuase their data shows it to be lower.

So, mark this story in your memory. Anytime you hear someone say 'oh, its 33%', or you read fiction like what is posted at the top, you'll know that the *real* number must be 10% or *less*.

And the LESS number is vastly more likely.

Why? Because MS *MUST*, by SEC law disclose this kind of data to the public in its SEC filings. Those filings *must* be accurate (unless MS wants to get sued by its shareholders and/or get delisted).

Those SEC filings must disclose potential or expected liabilities. If MS had a number greater than the one it claimed -- they would *have* to disclose it.

So, to all the FUD spreaders with their internet-urban-myths; you just look foolish repeating them.

wageslave3504d ago

Look at all the FUD spreaders disagreeing -- does *anyone* have a way to address this logically?

NOPE. Because we all know that 33% -- *and* 10% is CRAP. Just like the fictional sob story at the top of this page.

It is an internet-urban-legend and it is repeated over and over on N4G to spread FUD.

thisguywithhair3503d ago

So your saying that because MS says that it is lower that every other report in the world must be wrong?

gamesR4fun3503d ago

lol sorry man we all know its way higher than 16% does anyone not know someone whos had rrod. Heck my dads on his 5th machine bought one of the new falcons and it just went on him. Nope not rro guess they took out the warning lights... Just wont play any games he's just waiting for another cofin now.
On the positive side hes finally buying a ps3. Just like a lot of other 360 victims. What really gets me is that people like you still show up here every day defending the hardware failure they labeled 360. Like its their job or something.

crck3504d ago

I think its actually much higher.

wageslave3504d ago

You "think"? You'd be fooling yourself.

Do you know what the SEC is? Do you know what Generally Accepted Accounting Principles are?

On one hand we have a random annonymous source for "33%".

And on the other hand we have Microsoft *BREAKING THE LAW* to lie? We have them risking lawsuits from shareholders to lie?

You people are out of your minds. MS hasnt addressed the "33%" number because it is clearly ridiculous.

But, they *did* come out and address this ("16.4 percent had service calls -- more than half for general hardware failures") claim by Square Trade.

Do you people know that if a whistelblower came out and showed that they knew they were lying *OR* that the liability was greater than MS has lead the public, the SEC and its shareholders to believe?

MS would be sued. Do you think they would risk being sued, and the terrible press it would bring just to hide something?

MS is a corporation. It is rational. It has no reason to take such enormous risk -- what would be the gain? Why would they do this?

You *WISH* it was true, and that is why it is repeated so many times on N4G. Because there is population here that wishes to make the problem a bigger deal than it is.

You "think" that spreading a lie is better than the truth.

avacadosnorkel3504d ago

Microsoft has been sued already.

Multiple times.

Go check...maybe you can cash in on one of the class action suits.

crck3504d ago (Edited 3504d ago )

You're such a tool. I wasn't going to bother responding to your moronic post but since you came to mine its on.

1. MS has not stated a failure rate since the beginning of 2006. Have you forgotten Peter Moore's famous "its a moving target so I'm not going to respond to that"? So how could they be sued for lying? As the person above me stated there are several pending class action lawsuits against MS for 360 failures. Google it.

2. They put aside 1 frickin' billion dollars for repairs. At $100 a repair that is 10 million system repairs. Yeah, some go back for 2nds or 3rds but I dont think it costs them $100 to repair each one anyway. BTW 10 million units is every damn system they shipped from launch until Dec. 2k6. So they basically set aside enough money to repair every single system they sold for the first 13 months. And thats only to cover warranties for 3 years.

3. Out of 5 people I personally know, 4 of them have had their 360 red-ringed. Now I'm not gonna make some dumb statement like the failure rate is 80%. But I know these people as well as myself have been gaming for 15-20+ years. We know how to take care of our sh!t and none of us have ever experienced a system failure including the original xboxs. So don't tell me its a urban legend when its the only system to fail on me out of the 12+ systems I've owned through out the years.

gta_cb3503d ago

i wasnt going to reply to you, but when i saw

"but since you came to mine its on."

i had to, lol! its on now! its on! lol =p sorry i couldnt resist hehe. im not on either of your side just your comment made me laugh =)

crck3503d ago

Its all good man. Its all good. =)

SECRETzSQUIRREL3503d ago (Edited 3503d ago )

***"On one hand we have a random annonymous source for "33%".***
original post: based on a sample group of 1,000 warrantees it had issued, 16.4 percent had service calls -- more than half for general hardware failures (a.k.a. Three Red Lights)"

Fact: These results were done recently and with only 1000 xbox 360's, If you fanboys want to go by this sort of nonsence, then in my case out of the hundreds of people i personaly know i can state that that the 360 has over a 99% failure everyone i know (except 1 person, he barly plays or turns it on) thus your 99%. lol

The true failure rate can only be based on the total number of 360's sold from day 1 and how many failed, if you take these numbers it shows a extremely high 70%+ failure rate.

***And on the other hand we have Microsoft *BREAKING THE LAW* to lie? We have them risking lawsuits from shareholders to lie?***
We dont have MS doing anything, they choose to LIE and keep selling there gaming lemmon. To keep there shareholders from bailing and to prevent lawsuits and billions in money lost Lies are needed until they can produce a stable working system (next 4 years.

***You people are out of your minds. MS hasnt addressed the "33%" number because it is clearly ridiculous.***
your bypassing all facts and logic in a final attempt to protect your $500+ investment mistake. You can dodge the facts and make up all the lies you want regarding how great and stable the 360 is, however you fail to realize that millions have and continue to deal with real life failures everyday, the truth is out just accept it and move on.

***But, they *did* come out and address this ("16.4 percent had service calls -- more than half for general hardware failures") claim by Square Trade.***
LOL actually they try to hide it for a year and 1/2 only then after the cat was out of the bag they had no choice but to say something for damage control. So they lied and tried to make the consumer to buy there great system with brandnew useless 3 year 3 rod warrenty in which the newer systems Diagnostics were reprogrammed NOT TO SHOW 3 ROD upon failure.

***Do you people know that if a whistelblower came out and showed that they knew they were lying *OR* that the liability was greater than MS has lead the public, the SEC and its shareholders to believe?***
Its called filling out a Disclosure form when your 1st hired, anyone you breachs such contract can/will be sued/jail depending on the extent of damage to sales incurred. Would you open ur mouth if MS could take ur life away, i think not .

***MS would be sued. Do you think they would risk being sued, and the terrible press it would bring just to hide something?***
News flash...lol They have been sued many times since the 360 launch however Microsoft has more money and better lawyer's. Would you put your house on the line just to take MS to court for $500 lol i think not.

***MS is a corporation. It is rational. It has no reason to take such enormous risk -- what would be the gain? Why would they do this?***
Hmm RECALL, lose billions,get sued by breaching contracts with game developers etc... OR Lie for a few more years until the next system is released, let the customer Pay for there mistakes until then and continue making millions.. lol sounds like reason enough for me.

***You "think" that spreading a lie is better than the truth.***
No thats why im setting the facts straight, however you and fanboys like urself DO think that lies are better or at least easier to swallow then the fact that the 360 is going under and now that HD-DVD got beat out by Blueray teh 360 system is going under at a much faster rate.

wageslave3503d ago

1. MS has not stated a failure rate since the beginning of 2006. Have you forgotten Peter Moore's famous "its a moving target so I'm not going to respond to that"? So how could they be sued for lying?
They have said 3-5%. This article is saying it is less than what Square claims. That is pretty clear to me.

2. They put aside 1 frickin' billion dollars for repairs. At $100 a repair that is 10 million system repairs.
If you think it costs $100 to repair a system, you'd be wrong. There is overhead, parts, shipping, administration, accounting and on and on. You're "$100" is picked to come to a great number. Its a non sequitor. Where did you get your figure? Out of your arse is the answer.

3. Out of 5 people I personally know, 4 of them have had their 360 red-ringed.

Out of the 5 *IVE BOUGHT MYSELF* not one has had a single issue. 2 (upstairs & down) and 3 as gifts (nephews / nieces).

-

Lets review this article *again* for you.

Square claims that the number is "more than half of 16%". Can we accept that perhaps their *ACTUAL DATA* is more reliable than our opinions?

So. Square says 10% (as a guess). Now, MS actually PUBLICLY RESPONDS to say "that is inaccurate, and too high".

Do you know what would happen if they were caught HIDING liabilities from the SEC & their shareholders?

You start with "MS is evil" then end up twisting every situation to re-affirm this worldview.

You *want* the rate to be higher, and you are putting FAITH in this higher number. Faith is holding a belief without proof, or in the face of contrary evidence.

The "33%" heat-failure claim is one of "Faith". Wisheful thinking - nothing more.

crck3502d ago

1. They have said 3-5%. This article is saying it is less than what Square claims. That is pretty clear to me.

Show me when they recently said 3%-5%? Anything past April 2k6 will be fine. Yeah, I won't wait because you can't.

2. If you think it costs $100 to repair a system, you'd be wrong. There is overhead, parts, shipping, administration, accounting and on and on. You're "$100" is picked to come to a great number. Its a non sequitor. Where did you get your figure? Out of your arse is the answer.

They use to charge out of warranty systems $140 for a repair. I have heard they may be charging $100 now from a post from a different forum. As for how much it costs them, let me give you an example. If you have a problem with your car (out of warranty) does the dealership charge you cost to fix it? Hello no, they charge about double what a independent mechanic does and they already make a buttload. That $100 I listed would including overhead. But hey, lets say it costs them $250 to fix each system ok? That ridiculous number good with you? $30 less then they sell a new core arcade system for. Otherwise wouldn't they just ship out new systems to everyone instead of fixing them? At $250 a system thats 4 million busted systems out of the 10 mill they sold the first 13 months which is 40%. Or if you want to take total sales then thats about 16 million sold which is 25%. either of those numbers is not 3% to 5%.

3. Out of 5 people I personally know, 4 of them have had their 360 red-ringed.

Out of the 5 *IVE BOUGHT MYSELF* not one has had a single issue. 2 (upstairs & down) and 3 as gifts (nephews / nieces).

When then with my number and your number together thats 4 out of 10 busted. 40% genius. Whats your point?

+ Show (5) more repliesLast reply 3502d ago
Fan Tastic3504d ago

yeah right, like MS would be honest, lol

People who believe MS were the same sheep that bought the HD DVD add-on then MS completely kicked you to the curb and left you hanging to dry out to blu-ray.

bohemian 233504d ago

I had problems with my launch console as well and had some really bad costumer service until they sent me pgr 3 and I got my xbox back with a hard drive on it that i hadn't sent in with it so a free game and free hard drive was worth the price to me. I can see how it isn't to to some because in the end yes your console shouldn't break down on you like that especially when it's 3 weeks old but I had 2 ps2's that had bad dvd drives so. I know everyone remembers blowing in there Nintendo games. Some electronics have problems and if your an early adaptor you get to be the test subject.

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