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History Hunters International > Forum > History Hunters > Deletions > Outer Limits > Topic: Mystery failure hits Xbox

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	Author	Topic: Mystery failure hits Xbox (Read 79 times)
		Description: Microsoft facing $1bn Xbox bill
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Sovereign

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Mystery failure hits Xbox

« on: July 07, 2007, 11:09:21 AM »

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.

Microsoft declined to detail the problems that have caused an onslaught of "general hardware failures" in recent months but said Thursday it will extend the warranty on the consoles to three years.

"It's a pretty big black eye," said Matt Rosoff, an analyst at Kirkland, Wash.-based research firm Directions on Microsoft. "It's certainly not going to help the Xbox compete against Nintendo and it may be the stumble" that PlayStation 3 maker Sony Corp. needs to win sales.

Rosoff estimated that Microsoft's entertainment and devices division lost more than $6 billion since 2002.


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