Defective Xbox 360 consoles to cost Microsoft a billion dollars
Microsoft announced Thursday it expects to spend more than a billion dollars fixing flawed Xbox 360 video game consoles, which have logged "an unacceptable number of repairs."
"Suffice to say that with a billion-dollar charge and the focus we are putting on this it is a significant number and one that has our attention," Bach said.
"We think we have our hands around it at the engineering level."
Microsoft said it discovered console flaws that cause hardware failures signaled by three flashing red lights.
The problem is one of Xbox 360 design, not something caused during assembly, according to Microsoft Entertainment and Devices Division president Robbie Bach.
