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.