Xbox repairs cost Microsoft $1B
LOS ANGELES (Reuters) — Microsoft said Thursday it would take a more than $1 billion charge in the most recent quarter due to costs for a new extended warranty program for its Xbox 360 video game console.
Microsoft cited "an unacceptable number of repairs to Xbox 360 consoles" for the move. Xbox 360 customers who experience general hardware failure indicated by three flashing red lights will now be covered by a three-year warranty, the company said
The charge will be between $1.05 billion and $1.15 billion, before taxes, for the quarter ended June 30, Microsoft (Charts, Fortune 500) said. Top of page
