XBox360 failures to cost Microsoft $1bn

Microsoft have extended the warranty period for all XBox 360 owners to 3 years, and have agreed to cover all costs for replacing repaired or replaced units so far, and during the extended 3 year period.

Microsoft’s XBox 360 has been experiencing a high number of heat related failures, the so called ‘ring of death’, since the lights on the front of the console display a red ring when the unit fails, as many as 1 in 3 according to stores such as EB Games and Best Buy. This is in comparison to approximately 1% for the PS3, and zero known returned units for the Wii.

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