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To be or not to be? Microsoft to repair Xbox 360

July 06, 2007
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The Xbox 360 repair problem is a main subject to be discussed by the Microsoft team. The company announced that it is planning to spend at least $1 billion to repair the problems with its Xbox 360 video game console.

Microsoft did not revealed what problem 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.

In May, the Xbox 360 placed No. 2 in unit sales behind Nintendo's Wii, but still beat out Sony's Playstation 3, according to data from NPD Group.

"We don't think we've been getting the job done," said Robbie Bach, president of Microsoft's entertainment and devices division, which also makes the Zune digital music player, a distant competitor to Apple Inc.'s powerhouse iPod. "In the past few months, we have been having to make Xbox 360 console repairs at a rate too high for our liking."

Bach said the company made some manufacturing and production changes that he expects will reduce Xbox 360 hardware lockups, but he declined to identify the problems or say which others

In June, bloggers speculated that the Xbox 360 return problem was getting so severe that the company was running out of "coffins," or special return-shipping boxes Microsoft provides to gamers with dead consoles. "We'll make sure we have plenty of boxes to go back and forth," Bach said in an interview.

Xbox 360 prices range from $299 to $479, depending on their configuration. Microsoft will have to spend around 1B$ for the repair on the console.