Microsoft admit $1bn cost for XBox failures was ‘painful’

Balmer was quoted today in the press as saying that the $1bn cost that Microsoft swallowed for the 1 in 3 failure rate of their XBox 360 console was ‘painful’.

Microsoft recently announced that it would extend a full replacement warranty for 3 years for all XBox 360s previously and newly sold in order to handle the 1 in 3 failure rate that consumers are currently seeing with their XBox 360s.

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