Microsoft Takes $1 Billion Charge for Warranty Microsoft announces it will take a $1 billion charge to expand the warranty for its Xbox 360 video game consoles. The company says too many of the machines have succumbed to "general hardware failure." Microsoft is extending the warranty on the machines to three years.
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Microsoft Takes $1 Billion Charge for Warranty

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Microsoft Takes $1 Billion Charge for Warranty

Microsoft Takes $1 Billion Charge for Warranty

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JOHN YDSTIE, host:

NPR's business news starts with the Xbox costing Microsoft.

Microsoft announced yesterday it will take a more than $1 billion charge to expand the warranty for its Xbox 360 video game consoles. The company says too many of the machines have succumbed to general hardware failure.

You're affected if you see three flashing red lights on the front of the console. Microsoft is extending the warranty on the machines to three years and will repair or replace affected machines free of charge, including postage.

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