Friday, July 06, 2007

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Microsoft Extends X360 Warranty to 3 Years!!

Microsoft Extends X360 Warranty After 'Unacceptable Number' of Repairs

In a move that will cost Microsoft more than a billion dollars, the company is extending its warranty on the 360 to three years for anyone who experiences a hardware failure signaled by three red lights. In a clear admission that the system had a flawed design, the company has also made "enhancements" to the hardware itself to help rectify the problem.

Microsoft, finally recognizing the numerous problems its customer base has been experiencing with the Xbox 360 console, today announced that it's extending the one-year warranty (which it previously extended from 90 days) for the machine. Under the new plan, "any Xbox 360 customer who experiences a general hardware failure indicated by three flashing red lights will now be covered by a three year warranty from date of purchase."

"Microsoft stands behind its products and is taking responsibility to repair or replace any Xbox 360 console that experiences the 'three flashing red lights' error message within three years from time of purchase free of charge, including shipping costs," the company explained in a release. That said, "all other existing Xbox 360 warranty policies remain in place."

Microsoft said that it found an "unacceptable number" of repairs and the company has conducted "extensive investigations" into what has been causing so many units to breakdown. Although Microsoft would not say exactly what's been at the root of the failures, the company noted that it's made enhancements to the console. Again, specifics were not provided, but it's possible that the previously reported implementation of new heat sinks could be one of the enhancements.

The new warranty policy is going to cost quite a pretty penny as well. Microsoft said it will take a $1.05 billion to $1.15 billion pre-tax charge to its earnings for the quarter ended June 30. Robbie Bach, president of Microsoft's Entertainment & Devices Division, apologized on Microsoft's behalf and said the company looks at this as an investment.

"The majority of Xbox 360 owners are having a great experience with their console and have from day one. But, this problem has caused frustration for some of our customers and for that, we sincerely apologize," said Bach. "We value our community tremendously and look at this as an investment in our customer base. We look forward to great things to come."

Related to this announcement, Microsoft's corporate vice president of interactive entertainment, Peter Moore, wrote an open letter to the Xbox gaming community, acknowledging Microsoft's faults in customer service.

"You've spoken, and we've heard you. Good service and a good customer experience are areas of the business that we care deeply about. And frankly, we've not been doing a good enough job," said Moore. "Some of you have expressed frustration with the customer experiences you have had with Xbox 360; frustration with having to return your console for service after receiving the general hardware error message on the console."

"If we have let any of you down in the experience you have had with your Xbox 360, we sincerely apologize," he continued. "We are taking responsibility and are making these changes to ensure that every Xbox 360 owner continues to have a great experience."

For more information, check out the entire open letter, and this new warranty FAQ.

by James Brightman

http://biz.gamedaily.com/industry/feature/?id=16720

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