Interview Microsoft's Robbie Bach, part 2, on Xbox 360

The biggest business in Robbie Bach's Entertainment & Devices Group at Microsoft is the Xbox 360 video game business. After many years of losses, the game business is poised to turn a profit, as is the E&D group itself, for the fiscal year ending June 30. Of course, one of the reasons is that the one-time $1.15 billion write-off to repair defective Xbox 360s was included in last year's fiscal results.

In spite of that debacle, Bach is more excited about this business than ever. He actually believes it's possible for Microsoft, Sony and Nintendo to succeed in the games business in spite of the serious competition because of the broadening of the game market. This is the second edited transcript of an interview Bach did with a small group of reporters in San Francisco.

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kingme713777d ago

Pretty honest, straight forward. Alot better than some of the MS interviewees that lay it on pretty thick.

rroded3775d ago (Edited 3775d ago )

Now that we're out of warranty Im almost scared to turn on our 360. At least we couple pc's and a ps3 to keep us busy. No chance well ever buy another ms product tho. I'll give the games away and cut my losses next time my 360 fails.
Personally I say down with ms their crappy ethics no company has the right to sell us defective wares not at a 33%+ rate. But these guys do it with impunity then tell us its ok. Honestly it makes me ill but deep pockets seem to put them above the rules.

Elginer3777d ago

Sony owned 19 percent of Square-Enix...Interesting stuff.

DJ3777d ago

-Doesn’t it surprise you that fans are saying I want my third or I want my fourth replacement console?-
Robbie: "It speaks to the power of the product offering and service we provide."

It really just speaks to the fact that when someone has spent $500~800 on hardware and software for a platform, they're going to keep replacing the faulty hardware up to a certain limit. No one should EVER have to send in replacement hardware for repairs, and it reflects poorly on Microsoft's repair service.

GiantEnemyCrab3777d ago

Wow, I have to agree with you there. That is a slap in the face and having faulty hardware is absolutely unacceptable.

"In the ordinary course of something like this, you would expect it to show up in the customer reaction data. We just haven’t seen that. It speaks to the fact that they love their games and Xbox Live. Does it frustrate them? Yes. On the other hand, they know we’re taking care of them."

When I read that all I can think of was some MS exec going "Phew, we totally screwed up but I think we got away with it!".

It makes me sad that they didn't see any change in their customer reaction data, because they deserved to be hurt bad for what I consider the biggest hardware mistake in console history.

However, I think like you said people have so much invested in their online game purchases, actual disc based games and Live sub that they feel it's cheaper to deal with the problems then try and get out. Just wait till the next console they launch is released, I think people will be taking a second look and putting the build quality under a microscope before they buy with many opting to pass on it all together because of the RROD.

Elginer3777d ago (Edited 3777d ago )

damn right it is. I'm on my third 360. First one the gpu went to crap and the second ones ethernet port was fried by a power surge (NOT MS'S FAULT) but the gpu going to crap was. I've invested a lot into the system thats why I keep going back. I don't want to lose all my digital games and so on.

F*ck them for thinking it's ok to keep doing it, they need to fix the damn thing and thats it.

AllseeingEye3777d ago

Burn me once shame on me, burn me twice shame on you MS. Returning a console over and over again does not mean they love your product that much fool. It means they would have to sell all of the crap they bought for it at a loss on Amazon like I had to do but it was worth getting rid of it. Im playing MGS4.

xboxfounder3777d ago

You knew the console was not ready to ship. You knew they had not done a good job of testing the design, and that the manufacturing test equipment was not reliable and had huge gaps in test coverage. It did not take a year to learn that there were huge problems. The factory and field failure rates were very high from day one, kept increasing over time, and the data indicated many problems, not just the design defect in the GPU that causes the RROD over time. They have made mistake after mistake in judgement, engineering, and customer/shareholder care. It took a year for them to finally admit they didn't know what they were doing and hire IBM to come in and figure out the root cause of the RROD. Then it was solved very quickly.

It is monumentally disgusting for Robbie to continue to make these claims in public when he knows they are false. He needs to come clean and simply admit that he did not build the kind of organization required to design, produce, and sustain a product like this. Robbie, Peter, J, and the entire senior management team were so focused on beating Sony this time around, they threw their customers and shareholders under the bus in the process. And many of their employees as well. That 1.2B they paid for the extended warranty is a fraction of the total cost of quality their rush to ship prematurely has cost, and continues to cost.

They have lost so much money so far they can never break even on Xbox as an investment. But then again, they don't have to. Xbox is a defensive product. Subsidized by the profits from the Windows monopoly, in order to protect and extend the Windows monopoly into the living room. I'm no lawyer, but it seems there is an anti-trust law violation in there somewhere.