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Re: Microsoft to Spend $1.15 Billion for Xbox Repairs

On Jul 6, 9:00 am, Roy Schestowitz <newsgro...@xxxxxxxxxxxxxxx> wrote:
> ____/ ness...@xxxxxxxxxxxxxxxxxxx on Friday 06 July 2007 16:28 : \____
>
>
>
> > <Quote>
> > In what may be one of the costliest consumer warranty repairs in
> > history, Microsoft announced on Thursday that it would spend up to
> > $1.15 billion to repair failing Xbox 360 game machine consoles.
>
> > While the company would not say how many units were failing, Robbie
> > Bach, president of Microsoft's entertainment and devices division,
> > said that there have been an "unacceptable high number of repairs."
> > The majority of Xbox 360 owners, he said, have not experienced
> > hardware failure....
>
> > The size of the anticipated repair bill suggests that a third to as
> > many as half of the machines are flawed.
>
> > Microsoft, based in Redmond, Wash., said it would take a charge of
> > $1.05 billion to $1.15 billion against earnings in the quarter ended
> > June 30. Consumers know they have a problem if three red flashing
> > lights appear on the console. Gamers on online forums have been
> > referring to the event as "the Red Ring of Death" because the machine
> > then shuts down....
>
> > Microsoft said its entertainment and devices division reported an
> > operating loss of $315 million on $929 million in revenue for the
> > three-month period that ended in March, and analysts have estimated
> > that the company lost about $6 billion getting a foothold in the game
> > machine industry.
> > </Quote>
>
> >http://www.nytimes.com/2007/07/06/business/06soft.html
>
> This confirms the scale of the failures, which Microsoft could no longer deny
> because people (and shops) speak out. Digg was a like nuthouse when the news
> came out. People are shouting for blood because the sum above does not
> compensate for time and trouble. It also shows that Microsoft lied (yes, it
> did!).
>
> Since Microsoft not only lied about the XBox failure rate, but also about
> malware, when will it begin repairing 600 million PCs rather than just 11
> million Xbr0ken360?
>
> --
>                 ~~ Best of wishes
>
> Roy S. Schestowitz      |    $> apt-get -not windowshttp://Schestowitz.com |  Open Prospects   |     PGP-Key: 0x74572E8E
> Tasks: 111 total,   1 running, 109 sleeping,   0 stopped,   1 zombie
>      http://iuron.com- knowledge engine, not a search engine


I was just noticing the numbers---about $300 million quarterly loss
with $900 million revenue.  So the extra $1 billion loss about equals
their loss from other sources for a year.  It's still small compared
to the cumulative loss of $6 billion.  Recently someone said they were
predicted to show a profit in 2008.  Maybe so, but there's a lot of
lost territory to make up, and this repair fiasco won't help their
reputation.  Must be a challenging job, working at the Microsoft
Propaganda Ministry, trying to draw attention away from this kind of
PR.


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