Microsoft to extend Xbox 360 warranty, take $1 billion hit
C|Net | at | by Mike
update Microsoft said Thursday that it will take a $1 billion charge as it extends the warranty on the Xbox 360, after an investigation showed the game console can be prone to hardware failures.
"As a result of what Microsoft views as an unacceptable number of repairs to Xbox 360 consoles, the company conducted extensive investigations into potential sources of general hardware failures," Microsoft said in a statement.
Microsoft said its probe found "a number of factors" that can cause a general hardware failure indicated by three red flashing lights on the console. The company said that, in addition to extending the warranty, it has made unspecified design changes to the product.