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Microsoft has responded to customer concerns and taken steps to deal with the many problems customers have been having with faulty Xbox 360 consoles.

The company has announced that it will be covering the costs of all repairs to the console, and has said that hardware failures will now be covered by a three-year warranty from the date of purchase.

We believe that the amount of noise in the blogosphere on this issue has to some degree forced Microsoft's hand.

The move was announced by Microsoft's Peter Moore on Xbox.com:

"You've spoken, and we’ve heard you. Good service and a good customer experience are areas of the business that we care deeply about. And frankly, we've not been doing a good enough job."

The move will cost Microsoft somewhere in the region of $1bn, but represents a huge PR win for the company, when it was starting to look like a PR disaster.

The Red Ring of Death refers to the three flashing lights which indicate a major hardware failure. The failure rate of Xbox consoles has been estimated to be as high as 33%.

Many bloggers have been writing about the issue, which has become a PR nightmare for Microsoft, fueling the perception that their console is less reliable than its competitors.

However, this move, made possible by the company's deep pockets, has managed to turn the issue on its head, solving customers' problems in one bold stroke.

Microsoft is to be congratulated for tackling the issue head on, admitting its mistakes and reimbursing customers' repair costs. They have managed to turn a PR nightmare into a huge win.

Graham Charlton

Published 6 July, 2007 by Graham Charlton

Graham Charlton is the former Editor-in-Chief at Econsultancy. Follow him on Twitter or connect via Linkedin or Google+

2565 more posts from this author

Comments (1)

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paul

i think that you must be joking, and maybe you are part of the pr team yourselves.

nothing has been resolved as yet, and you are speaking far too soon about these matters, there is a hell of alot of people that will not agree with what you have said ..

33% is greatly underestimated.

they havnt solved customers with any bold strokes whatsoever.

its been a thin wobbley line with lots of snaps and alot of knots to tie the thin wobbley line back together.

and they havnt won nothing yet.

theres plenty of people out there still very unhappy, and still getting red ring of death.

how could you even write this. you couldnt be more wrong.

i am one of the bloggers an comments like yours are just made up to hide the dissasters of the past, an its a past that shouldnt be hidden,

ive not heard any appology from microsoft, must have been a small appology, was he whisppering.? cause we didnt hear him.

they have not won as you put it.

when we tell you that they have won, when we the customers start to tell you that they have done a good job, then you will know that they have.

but we arnt saying anything of the sorts yet mate.

over 6 years ago

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