Xbox 360 glitch cost Microsoft $1 Billion

[Colonel Ingus]

In another setback for Microsoft Corp.'s unprofitable entertainment and devices division, the company says it is planning to spend at least $1 billion to repair serious problems with its Xbox 360 video game console. link

[Alessandro17]

Peanuts for them.

[Colonel Ingus]

1 Million may be 'peanuts' but 1 Billion I think their accountant will notice being missed

 

Yes they can afford it, but that's not the point. Microsoft is hitting some hard times.

 

Everywhere you look microsoft is fumbling. Have you seen how low their stock price is compared to Apple?

 

Even the fanboys and the spin doctors can't deny this. I wonder why microsoft won't tell us what's 'really' wrong with the 360...

[apowerr]

1 Million may be 'peanuts' but 1 Billion I think their accountant will notice being missed

 

Yes they can afford it, but that's not the point. Microsoft is hitting some hard times.

 

Everywhere you look microsoft is fumbling. Have you seen how low their stock price is compared to Apple?

 

Even the fanboys and the spin doctors can't deny this. I wonder why microsoft won't tell us what's 'really' wrong with the 360...

They need to do something about the 3 red rings. I have had a 360 since April 06, and I have never had an issue with it. However I know two people who have. They need to show consumers that they really care and are trying to improve the situation. In fact, I think MS purposely had the 1 Billion figure made into such a big deal to show they are actively trying to fix things.

 

Whats really wrong with the 360s? AFAIK three factorys produce them. I would say one or two of the factories suck.

 

MS is fumbling? I wouldnt say that, Office 07 has been a pretty huge success and the Xbox 360 is the top selling console (I realize it had a headstart. I also realize the article said it was second, but Im still pretty sure 360 is first). As far as consoles go, XboxLive is unparalled. The Zune, was a half-assed attempt. I dont think anyone thought it would impact the iPod. Hopefully Zune revision 2 will be decent. As far as Vista goes, is it a failure? No. Has it recieved the more backlash than any other Windows version?? Yes. Vista was a wakeup call for redmond. If they want to continue to dominate the PC market, they cant just sit and idle. They need to release great products. Like Steve Jobs said in 1997, for Apple to win MS doesnt have to lose. Apple just needs to make awesome stuff. MS should adopt that strategy, stop copying Apple.. Make good stuff. As far as I know the Office team is in charge of Windows 7, or at least the GUI. When you look at how great Office 07 is (new open source formats, new GUI, better integration) you can rest assured that Windows is in good hands. Im glad Microsoft is getting such fierce competition from Apple, it forces both companies to really innovate.

[Colonel Ingus]

MS is fumbling? I wouldnt say that, Office 07 has been a pretty huge success

Office is the only real exception. Their entertainment division reported an operating loss of $315 million, the Zune is a absolute joke, they had $10 billion loss in bad investments, $5 billion (that's Billion with a B) related to antitrust issues, and as far as vista goes yes, I think many people consider it a flop too, or at least not as good as they were hoping for. In business, if General Motors can fall, then so can microsoft. Sometimes the bigger they are, the harder they fall. They are not down and out just yet, but they are certainly headed in that direction if they don't turn it around soon. At some point there will be a 'straw that broke the camels back' for them if they continue like they have been.

[GBK.Xscape]

yea, i have had the 3 red ring problem once on my xbox already, and it literally just happened to my friends xbox 3 days ago.... lamesauce if you ask me

[darksideofthemoon]

i know lots of people with the red ring thing (hey it rhymes ^^) i read about the glitch in the daily mail a couple of days ago.....Microsoft have stumbled.....but will they fall?

[apowerr]

i know lots of people with the red ring thing (hey it rhymes ^^) i read about the glitch in the daily mail a couple of days ago.....Microsoft have stumbled.....but will they fall?

No. I think this whole announcement and warranty thing was done with great and careful planing. The three red rings of death is plagueing Xbox360s. Some customers have even gone through multiple Xboxs.(I have only had one, and never had any issues with it. This doesnt change the fact that the Xbox360 failure rate is estimated at 33%) I think Microsoft did this on purpose to show customers that they realize it is a huge problem, that they are trying to fix it, and in the mean time they will cover your loss.

[Colonel Ingus]

I think Microsoft did this on purpose

LOL Did what on purpose? Cause the defect or fix it?

 

Since so many XBox's are defective "out of the box" (pun intended) microsoft has no other choice but to fix this issue. If they ignored it they would lose whatever little reputation they have left, and the company would sink like a stone. Microsoft isn't doing anyone a favor but themselves. It's THEIR PRODUCT. It's THEIR DEFECT. They're fixing it because it's the only real option that they have

[Soündless]

i've never heard of the red ring thing, what is it

[apowerr]

LOL Did what on purpose? Cause the defect or fix it?

 

Since so many XBox's are defective "out of the box" (pun intended) microsoft has no other choice but to fix this issue. If they ignored it they would lose whatever little reputation they have left, and the company would sink like a stone. Microsoft isn't doing anyone a favor but themselves. It's THEIR PRODUCT. It's THEIR DEFECT. They're fixing it because it's the only real option that they have

I meant publicize it so much, they did that on purpose. And I can think of a lot of other companies that wouldnt go through a 1 BILLION dollar warranty upgrade.

 

i've never heard of the red ring thing, what is it

If you get Three Red Rings when you turn on your xbox 360 it means you have had a critical hardware failure. This happens a lot on older Xbox360s because of poor soldering around the GPU (or something like that).

[Colonel Ingus]

I can think of a lot of other companies that wouldnt go through a 1 BILLION dollar warranty upgrade.

And those companies don't have a very good reputation do they? Back when Sears was just a catalog store (1930's - 40's) they were the number one seller of washing machines. One year all of their washers had a bad leak caused by a defective gasket. All of the company heads met and discussed what to do about the problem. Most of the company heads said to ignore the problem, because it would cost the company too much money to fix. The President of Sears asked all of them "What is our companies reputation worth? Is it not worth the price of a new gasket?". Sears went on to fix all of those defective washing machines and then became a huge company. Everyone who has ever worked for a large coporation that has been sent to sales training has heard of that story about what the president of Sears said. They teach it because once a company, and company, loses its reputaton - no amount of money can save the company. Microsoft is doing this because they have to. Sure their spin doctors will get some advertising out of this but make no mistake, they are spending all of this money to save their hide. I don't have an XBox but I do respect them for standing by their customers and doing the right thing.

[Eskun]

There may be a fix for this?

 

[Zomfg possible Red Ring of Doom Fix]

 

I have no Xbucket360 so I wouldnt know whether it works or not, but a few have already stated that it does, so give it a try!

 

Edit:

[Tetrasoft]

Has anyone seen the current ratio of xbox 360 to wii. 27:1. For every 27 Wii's, there is 1 xbox 360.

[depl0y]

Well I own a Xbox 360 and this is the 2nd I got from Microsoft. I have 2 types of feelings for the machine. I really like the games and the dashboard on the thing (Xbox Live etc), but the device is driving me crazy. It's noisy and because of all the failures you are afraid that it will die on you as soon as you touch it.

 

And the comparison with the Wii.... I don't think it is really fair. First of all the price range is totally different and also the hardware set is totally different.

[Lostgame]

And the comparison with the Wii.... I don't think it is really fair. First of all the price range is totally different and also the hardware set is totally different.

 

But guess what? They're both video game consoles. So I'd say that comparison is pretty fair.

[bxsci(macuser)]

it is perfectly alright to compare the xbox 360 to the wii - they are in the same generation of console.. it was nintendo's choice to use less powerful hardware and sell a cheaper machine - IT WORKED they sold a lot more systems in a lot less time - don't say you cant compare

[Morpheus Phreak]

Has anyone seen the current ratio of xbox 360 to wii. 27:1. For every 27 Wii's, there is 1 xbox 360.

 

 

Is your brain leaking or something?

 

Sure the Wii is outselling the 360 right now in number of units per month, but the numbers you're just throwing out there are impossible.

 

The 360 had over a year lead on the Wii, the Wii right now is catching up to the 360 numbers-wise.

 

The Wii is outselling the 360 on a 2:1 basis right now, so that's nowhere near enough room for your numbers.

 

For what you're saying to be possible the ratio would have to be almost 100:1 and I know for a fact that the Wii is not selling at numbers topping 20million/month

[CLiDE FTW!!1]

And I can think of a lot of other companies that wouldnt go through a 1 BILLION dollar warranty upgrade.

You mean like Apple and it's faulty hard drive-based iPods?

[EFI]

You mean like Apple and it's faulty hard drive-based iPods?

 

I don't ever remember hearing about a 1 billion dollar warranty upgrade because of the hard-drive based iPod. Where did you pull this one from? Source please?

[apowerr]

Has anyone seen the current ratio of xbox 360 to wii. 27:1. For every 27 Wii's, there is 1 xbox 360.

omfg no wai!!111one1!!one11 I hear that Microsoft is going to buy Boeing, and that Toyota is going bankrupt too! Please, dont pull statistics out of your ass. (not meant to flame but that is ridiculous)

[CLiDE FTW!!1]

I don't ever remember hearing about a 1 billion dollar warranty upgrade because of the hard-drive based iPod. Where did you pull this one from? Source please?

Do you read through threads, or just look for my posts?

 

The poster I quoted said that he doesn't know any companys that would go through a $1b warranty upgrade.

 

And I gave Apple as an example, since their faulty HDD based iPods are simular to X360's failure rate.

[EFI]

Do you read through threads, or just look for my posts?

 

The poster I quoted said that he doesn't know any companys that would go through a $1b warranty upgrade.

 

And I gave Apple as an example, since their faulty HDD based iPods are simular to X360's failure rate.

 

Yeah, you still have not given the proof for your claim...that's what I'm asking for. I can read and re-read the previous post, but where is the proof of that 1$ billion that Apple spent on the HDD based ipods...that too with a failure rate (~33% for X360, meaning 1 in 3 iPods) similar to that of the X360's ? You're making rather a bold statement on thin air (ie. no proof to back up).

 

I'll believe you when you give your sources.

[CLiDE FTW!!1]

Yeah, you still have not given the proof for your claim...that's what I'm asking for. I can read and re-read the previous post, but where is the proof of that 1$ billion that Apple spent on the HDD based ipods...that too with a failure rate similar to that of the X360's ? You're making rather a bold statement on thin air (ie. no proof to back up).

 

I'll believe you when you give your sources.

Are you illiterate?

 

No one said Apple spent 1billion on a warranty upgrade.

 

Hopefully you can read this:

http://www.macintouch.com/reliability/ipodfailures.html

 

Like I was saying, some models (IE 40GB iPod) had nearly a 30% failure rate, similar to X360.

 

Needless to say HDD based iPods costs just as much as a 360...

[Colonel Ingus]

Are you illiterate?

If you want to be taken seriously, you should lose the immaturity/rudeness...