Xbox repairs cost Microsoft $1B
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Microsoft Corp. said Thursday said it would take a more than $1 billion charge to fix “an unacceptable number of repairs” to its Xbox 360 video game consoles and had missed shipment targets for the end of June.
Microsoft said it had investigated the sources of hardware failures indicated by three red flashing lights on the console and had identified “a number of factors” that can cause such failures. Bach said many of those factors took time to show up in the consoles, explaining why the number of repairs had grown in the second year of the Xbox 360’s release. He would not say exactly how many Xbox 360s had been returned due to hardware issues except that “the number is too large.”
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