Microsoft to Spend $1.15 Billion on Xbox Repairs

Microsoft Corporation announced that it will spend $1.15 billion to repair a large number of "Xbox 360" video game consoles, after the company revealed that "on-going testing [has] identified several factors that can cause a general hardware failure indicated by three flashing red lights on the console." The company also announced expanded warranty coverage for affected Xbox consoles: "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." While Microsoft has not disclosed the number of consoles that may be impacted, according to the New York Times, "the size of the anticipated repair bill suggests that a third to as many as half of the machines are flawed."

• FAQ on the Xbox Repairs and Warranty Extension (Microsoft)
• "Open Letter" from Microsoft's Peter Moore
• Xbox 360 Warranty Update (Microsoft)
• NY Times: Microsoft to Spend $1.15 Billion for Xbox Repairs
• Safeguarding Product Purchases (FindLaw)
• Warranty Rights FAQ (FindLaw)