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| Version 1 | Version 2 |
|---|---|
| Microsoft facing $1bn Xbox bill | Microsoft facing $1bn Xbox bill |
| (about 17 hours later) | |
| Microsoft has said that it is facing a bill of more than $1bn to cover the cost of offering extended warranties, after failings with its Xbox 360. | Microsoft has said that it is facing a bill of more than $1bn to cover the cost of offering extended warranties, after failings with its Xbox 360. |
| The company admitted it had been forced to make "an unacceptable number of repairs" to the consoles after key hardware failed. | The company admitted it had been forced to make "an unacceptable number of repairs" to the consoles after key hardware failed. |
| Customers who suffer the problems will now be given a free three-year warranty, the company said. | Customers who suffer the problems will now be given a free three-year warranty, the company said. |
| The failures are indicated by three red flashing lights on the console. | The failures are indicated by three red flashing lights on the console. |
| Microsoft has not revealed how many of its machines have suffered the problem, but said the number was "bigger than we are comfortable with." | |
| It added that the move - which will also see some people reimbursed for postage and repairs on consoles which were out of warranty - was aimed at keeping the loyalty of its customers. | It added that the move - which will also see some people reimbursed for postage and repairs on consoles which were out of warranty - was aimed at keeping the loyalty of its customers. |
| "The majority of Xbox 360 owners are having a great experience with their console and have from day one," said Robbie Bach, president of Microsoft's Entertainment & Devices Division. | "The majority of Xbox 360 owners are having a great experience with their console and have from day one," said Robbie Bach, president of Microsoft's Entertainment & Devices Division. |
| "But this problem has caused frustration for some of our customers and for that, we sincerely apologise." | "But this problem has caused frustration for some of our customers and for that, we sincerely apologise." |
| It added its Xbox division was still expected to make a profit during the financial year beginning 1 July 2007. | It added its Xbox division was still expected to make a profit during the financial year beginning 1 July 2007. |
| Migration manoeuvre | Migration manoeuvre |
| Separately the company has announced an October launch of its advanced version of the Xbox - the Xbox 360 Elite - in Japan, where it lags behind Nintendo and Sony in the console market. | Separately the company has announced an October launch of its advanced version of the Xbox - the Xbox 360 Elite - in Japan, where it lags behind Nintendo and Sony in the console market. |
| And the company has also unveiled plans to open a software development centre in Canada which it said was a way of hiring talented people from abroad who would struggle to obtain a US working visa. | And the company has also unveiled plans to open a software development centre in Canada which it said was a way of hiring talented people from abroad who would struggle to obtain a US working visa. |
| The Vancouver location would "allow the company to continue to recruit and retain highly skilled people affected by the immigration issues in the US", Microsoft said. | The Vancouver location would "allow the company to continue to recruit and retain highly skilled people affected by the immigration issues in the US", Microsoft said. |