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Virtua
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It's a real shame that the system with something to play on it breaks, while the system nobody wants to play, doesn't.
http://www.n4g.com/xbox360/News-50168.aspxAsian Xbox 360 manufacturers are blaming poor console design cheap components and a lack of testing coupled with a manic obsession by Microsoft to beat Sony as the reason for the Xbox 360 "Red Ring Of Death" probems.
Two years ago In a desperate quest for supremacy in the gaming console market and in an effort to beat Sony and then later Nintendo with their Wii console, Microsoft committed themselves to getting the Xbox 360 to market some 12 months ahead of the new Sony PS3. They also stripped costs out of the unit in an effort to undercut Sony.
Now they are paying the cost of their failed marketing exercise after the world's largest Software Company announced on Friday that they will take an A$1.3 billion to $1.4 billion charge to extend warranty coverage on repairs and replacements. The company said a months-long investigation into an "unacceptable number of repairs" to Xbox 360 consoles has helped it identify several flaws that caused the system to crash—indicated by three flashing red lights on the front dubbed the "Red Ring of Death" by gamers.
Smarthouse suspected 7 months ago that there was a problem with the Xbox 360 after we got a high level of emails from readers complaining of problems. We wrote a story that appeared online. This in turn triggered a lot more readers to write to us about their problems not only with the Xbox 360 but in dealing with Microsoft.
In Australia Microsoft refused to return calls on the issue and their PR Company even went as far as saying that there was no problem and that SmartHouse was exaggerating. So we decided to contact retailers selling the Xbox 360. They reported massive problems with the console with several claiming that the return rate was over 30%
As an example the Sony PS2 had a return rate of between 1 & 2% The PS 3 which has only been in the market for 6 months is less than 1%.
Robbie Bach, president of Microsoft's entertainment and devices division, declined in an interview to say what specifically caused the failures or how high the failure rate has been, but Asian manufacturers of the Xbox 360 who have been pressured by Microsoft to lower costs by as much as 15% say that the problem is caused by poor Microsoft design and the Company buying low cost components in an effort to beat Sony.
Recently Microsoft adopted various strategies to be more cost competitive with its Xbox 360 game consoles, with moves including asking for a price reduction from Taiwan-based component makers and working with Lite-On IT for its add-on HD-DVD drive, according to sources in Taiwan.
One Asian manufacturer that SmartHouse spoke to on Friday said "Microsoft have known of this problem for a long time. They are trying to blame component manufacturers but it was a combination of bad design and them (Microsoft) wanting everything cheap. This is what caused the problem along with them wanting to beat Sony to market. A lot of manufacturers were pushed to deliver components without much testing of the components working together inside the console".
Microsoft has said little about the causes of the hardware woes. It relies on two contract manufacturers to make the Xbox 360—Flextronics International (FLEX) and Celestica (CLS)—both of which make the finished product at plants in southern China. But Bach indicated the issue had nothing to do with the recent spate of tainted or defective Chinese imports.
"You should think of it more as a design question," he says. "We had some design issues, and it's a combination of factors that led to the problems." Microsoft said it worked with the contract manufacturers to identify and address the problem, and has taken steps to make sure future shipments do not suffer similar issues.
Despite adding to the continuing losses for the entertainment and devices division, Microsoft executives pointed to a silver lining: "Most customers are going to look at it and say, 'Great, Microsoft stands behind the product,'" Bach says. "Ultimately, it becomes a positive thought in people's minds."
Stalled Momentum
Microsoft will record the expenses in the quarter that ended June 30, compounding losses at a division that has yet to become profitable. Fallout from the admission won't end there. The hardware problems could undermine Microsoft's credibility with the hard-core gamers it has fought hard to court in recent years. The company belatedly owns up to flaws that reach back to the November, 2005, Xbox 360 launch.
Users complained then that the console scratched game discs and rendered them unusable. It took nearly a full year for Microsoft to admit that the original batch of shipments was failing at an unusually high rate. Last September, the company extended its 90-day warranty to a full year. Then they offered free shipping on returns.
What's more, Microsoft's pronouncement could further slow the momentum the company had built with its year-long lead over Sony's PlayStation 3 and Nintendo's Wii. Since January, the Wii has stolen the spotlight—and gamer dollars—from rival systems. Microsoft shipped 10 million units through 2006, but has sold only 1.6 million additional units since then. The company failed to reach its forecast of shipping 12 million units through June.
In June, the Wii outsold the Xbox 360 by a 2-to-1 margin and it outstripped PlayStation 3 sales nearly 4 to 1, according to product tracker NPD Group. Nintendo President Satoru Iwata predicts the company will sell more than 14 million units in its current fiscal year.
Game Releases Planned
Like other makers of consumer electronics, Microsoft is willing to accept losses on gaming consoles in hopes of recouping revenue through game software. And Microsoft plans to release some blockbusters later this year. Along with others in the games industry, it is expected to showcase many of those products at this month's annual E3 games expo held in Los Angeles. Microsoft is betting its core Halo franchise will give it a boost later this year with the release of Halo 3.
The company also has stolen a march on Sony, getting Take-Two Interactive Software (TTWO) to drop its PlayStation exclusivity for the next instalment of its Grand Theft Auto franchise
The hardware problems could undermine Microsoft's credibility with the hard-core gamers it has fought hard to court in recent years. The company belatedly owns up to flaws that reach back to the November, 2005, Xbox 360 launch.
The combo blows ass, end of story. I rather be shot than to support it.I love my Wii60 combo to death
...and yet you keep coming back to this thread, listening to both Nintendo and Microsoft "nerds." I'm going to have to call you out for lying about having better things to do. Admit it, you get a huge boner clicking on this thread, hoping someone else is talking to you again. What, did you break your 1500 day streak to start coming here instead?I have better things than to listen to a Nintendo nerd like you anyway
Bullshit. If you had any belief in your statements and weren't just being stubborn in supporting your stupid intarnetz message boardz "allegiances," you would already be done with them. You love the 360 and you hate yourself for it, so you bash the console, which is hilarious. They're video game consoles, not cocaine.I have not done it to MS products, but the next time my 360 dies (and MS makes me may), then I'm DONE with them
http://www.joystiq.com/2007/07/10/scratchin-it-xbox-360-class-action-lawsuit-filed/We knew it was only a matter of time until someone brought a class action lawsuit against Microsoft and the Xbox 360, but we thought it would be related to failure rates and the red ring of death, not scratched discs. But, here it is before the ink is even dry right after being filed in Fort Lauderdale, Florida. The plaintiff and his lawyers are seeking more than five million dollars (insert Dr. Evil laugh here) to cover the damages and costs. C'mon, this is Microsoft, their soft-serve ice-cream budget for a holiday weekend probably exceeds five million smackers.
The lawsuit contends that the plaintiffs in the case "have been damaged in that their game discs were destroyed by the Xbox 360 during reasonable, foreseeable, normal, and intended use." They blame Microsoft because "The Xbox 360 was negligently designed and manufactured in that the Console's laser disc reading assembly contacts and scratches the video game discs during normal and intended operation and use." They cite at length the scratching study conducted by the Dutch TV program Kassa (are they getting a cut of this?) and the fact that the plaintiff couldn't play his Madden NFL '07 disc.
Either someone smells blood in the water, or the timing on this thing is just impeccable, we're not sure which one. One thing is for certain, this will probably get lost in the cacophony of E3 this week. Check out the pages in the gallery below, and chime in with your two cents.