is there a link proving fox said this?

I checked out the site in the gaming section and saw nothing. I was checking quickly so maybe i missed it.

Wtf! It`s not my billion dollars they are spending. And why would sony be celebrating anything. The developers are still flocking to 360. Despite 360 console failures games are selling hard and fast. Sony wish this would effect developers not just gamers preference if at all.

And 30% of 11 million sold xbox 360's = 3,300,000 defective consoles not 2.5 million.

2.5 million broke systems sounds better to me!

does that mean there are only 7.5 million 360 then?!!! sh!t thats sucks

And Australia also having major problems with 360, i hope elite dont do bad in japan

wow didnt know it will be millions of defective 360..no wonder they confess..they should of handle this from the start..but yeah feel bad for them..microsoft try to take out sony but now it seem like its goin to be more difficult..no one wants a system that will die on them evn if the warrany is extended to threee years .its just a hassle..they need to do a revision fast!!

IVE SENT BACK MY 360 LIKE 4 TIMES sieriously i dont care 360 has the best games n that keeps my comin back. ps1 ok, ps2 major problems/ xbox ok xbox 360 major problems, xbox 780 probley gonna be ok. ms is new to this, sony is AWESOME cause they built a console with no failure. i hate how crappy the 360 is but they have the best sytem as of right now. ps3 might take it back, they have beeen the leader for over a decade. after seein the halo 3 screen shot i have no doubts about how the 360 and ps3 are equal for now but right now i love shadowrun and im waitin for all the sixk A%% games comin out on the 360. thank god for the ps3 price cut so now in a year i can afford the ps3. until then ill deal with the 360. nothin has made me want n e thing otherwize. MASS EFFECT!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!then ill see killzone!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!:::::::BO TH SYSTEMS CAN PUMP OUT THE SAME GRAPHICS, WHY WOULDNT KILLZONE BE AMAZING!!! IF OTHER 360 GAMES LOOK AWESOME???????

he he he.... q:

I can't believe people are taking creds to these ''news'' articales. The most articales that have been released about this issue have a vague or no source. Whats PSU is stating is a opinion. This is just a opinion piece, give me some real credible information then i'll believe it.

LOL, this is what ya get when you rush ya product....VISTA anyone ?.

P.S........3 = FTW!.

I'm glad Microsoft has finally been big enough to admit it. I heard it on the radio this morning during the news - not a good start to E3.

I'm sure M$ will spin it and everyone will forget about it after E3 but I would never buy a piece of crappy hardware that cost them buttons to make - if you pay peanuts you get monkeys!!!!

I'd prefer to pay for quality - and I have thats why I own a PS3

I have a broken 360 sitting in my bedroom for month,which is waitting for me to paid for the repair.
I wounder if they will settle my case too.

When you want to buy a new console would you ask the retailer for one with a heatsink?

Should now lead this console war :)

Uuuuuugggghhhhhhhh............ . >_<

N4G how a loath thee. If you need some Moderators I'd be happy to help out. I've had a lot of experiance on many different forums and message boards.

Peter Moore to consumers: suck on my RROD biaaathcches!! "...ya know stuff breaks...."

since 2005? tsk tsk procrastinate, procrastinate now what?

...see if they would've addressed this whole thing head on a long time ago it wouldn't be BLOWING THE HELL UP right now on TV and radio right before E3. on FOX / SKY / BBC News? Wow - not good.

11.6 million sales worldwide which means they in theory are on 9.1 million non red ring effected sales, so the quote below is way out.

"8 - 2.5 million!!!!
does that mean there are only 7.5 million 360 then?!!! sh!t thats sucks"

"If you want to go hardcore and compare the Elite, then it's only a measly $20 dollars cheaper. But you get 2x the storage capacity and a greater selection of games. "

with 20 Dollar more u have Blu-ray player and third party HDD support..

u can add 500 GB HDD to ur PS3 , 120 GB HDD in Elite is an advantage for JUST XBOX users.. for PS3 users there is no difference between 60GB or 80GB or 120GB ... u can add extra space anytime u want..

Microsoft has enough money to handle this problem.. they dont want to lose Console war for just a hardware error (BIG ONE) .. so they do anythin to solve that..

to Who dissagree with me : I didnt mention for 20$ more u will have also WiFi internet,Multi media Card reader,HDMI 1.3,Linux support,4 USB 2.0, Free Online service,Reliable Hardware and so on....

Ha! How will being the bigger man be good news for Sony? 3 years warranty plus a price drop and more AAA games lined up - 360 sales is destined to skyrocket from here on. Feel the trembling feet of the Sony fans yet?

$1.1 billion is a lot. The xbox1 project lost $4 billion all together in 4 years. MS said they would be making a profit by the end of this year buy that isn't going to happen. Also the red rings doesn't seem to be fixed. The failure rate could rise easily because launch consoles are getting old and people who just bought a new 360 those are not gonna break for a while, but eventually will. I say the failure rate can be as high as 40%. Sony just got a 2nd chance to take MS out because PS3 can drop the price. MS isn't going to drop the price because they want to cushion the 1.1 billion lost. Every business wants to make money even if you're a Sony or MS that make 300 billion to 400 billion every year.

Sony the company isn't happy about this, i dont think sony wants MS to fail. i think it's the extreme Sony fanatics that carryon bout MS failing just like the extreme Xbox fanboys that talk up a storm when sony was in the red earlier this year after the ps3 launched. healthy competion helps other grow. if MS never did live i dont think sony would have really aimed for such an ambition online system, and follow through with so much more in the coming months. i sure hope that MS gets this thing addressed and so they can greatly satisfy it's buyers. seriously because this aint a good look.

well everyone knew it, now what lead to this been announced possilble ban on the console in europe being talked about behind the scenes
the commisoner wasn,t happy on what microsoft had to say in reply to her question about reliability
court cases pending against microsoft over the 360 by the public
bad press week in week out over three red rings
or just plain common sense dont lie to your fan base as they will leave you,
can microsoft be trusted again ever i think not they better have the later 360 version right or its the end
now you have to doubt the numbers of consoles sold now theres all sorts of ways to boost the numbers up over an issue like this if anyone gets a new console replacement that will count as a sale in store or via microsoft ,so i think the wi is now the leader in the console race in over all working systems no doubt
the message to microsoft is dont lie to the consumer as they wont buy your sh*t

What are you talking about? I know of no company that guarantees that their products won't be defective. The next best assurance is to give a warranty and we're talking about 3 years here. Even if the failure rate really is 30%, that's 70% of owners who have benefitted from the extended warranty. This is simply superb news from a consumer's perspective. In the meanwhile, assuming your Blu-ray player dies out after a 2 years lifespan, you'll get jack from Sony.

Microsoft making $hitty quality consoles? Nooooo!
I had the 1st launch Xbox (with the fatty controllers) and it scratched my disks. Red ringed on me after about 13 months. :(
Now I don't have a 360, but my brother in law does and has returned his at least once as far as I know.

I had no idea the problem was so widespread.I thought a lot of this was just over hypying of a much smaller problem.A quarter of all 360's to date have had a problem!Thats horrendous, but as long as the problem is resolved and those people affected are reimbursed and MS learns something from this then, like the PS2 problems of yesteryear, we can still enjoy a great console and look forward.Well done MS, better late than never.

...Everytime someone tries to defend the 360 all the PS3 flamers hit disagree. As soon as a PS3 fanboy disses the 360 they all hit agree. Why don't all you PS3 fans f**k off and go play your PS3 and let the 360 owners live with their decision to support the 360. So what if we have made a bad decision in your eyes, I have been burnt enough by Sony over the past decade to never want another Sony product in my house. However, I don't go out looking to put anyone else off buying Sony - its their choice.

You Sony fanboys are as bad as those who try push religion on people and I'm afraid all this crap you guys keep repeating puts me off ever wanting a PS3. Basically, if my 360 packs in I'll switch back to PC gaming.

LOL but the price cut on the ps3 not even happening. So it's still just a 600$ George Foreman Grill!!

that's why Microsoft announced it'd extend warranty to 3 years and reimburse all repair and shipping fees. so current customers won't get too pissed when Microsoft announce the price cut at E3.

BTW, $1 billion is not going to hurt Microsoft... it's just pocket change for Microsoft.

Buddy you are completely insane, do you have any evidence that Sony have sold PS2 prototypes? And sorry buddy, MS lied to you big time all the time, didn't they claim 360 failures are not higher than usual? Haha I feel sorry to tell you that 360 is not just the most unreliable console in history, it's the most unreliable electronic device in history lol

Microsoft actually admits faults and realises that people didn't buy their bull about 3-5%. Sony wakes up and realises people won't bite at that outrageous price no matter how good the value may be. See how complaining helps?

One thing though - unless they're improving console builds (65nm etc), they'll still break down at the same percentage. 25-33%

The 1.1 billion loss guarantees no price drop this year, if it wasn't already confirmed.

I sense a bit shift coming. MS can't drop because they need to be profitable - 100 would be outrageous and out of the question, 50 would have been reasonable, had they been making money on 360s and not losing it - 65nm changes this and gives them profit on each.

They needed at the least a Halo 3 boost, that would flow into GTA and then the holidays which would be 4 months of increased sales - where selling at a loss would kill any profits. People said they could afford it. Of course, but they want to be profitable - and now they've lost an additional 1.1 BILLION!

They can't react to Sony - the Elite is the main attraction and that's comparatively worse than the PS3 which is soon to be only 20 bucks more expensive, the Elite is also apparently in short supply, causing these decreases in sales even though the Premium and Core (both now "gimped" in the eyes of potential Xbox consumers (hardcore gamers)). Furthermore, Sony's closer than they were to mass market, and have the most diverse lineup this holiday season.

I'm not gonna put out any guesses, this is gonna be an intense second year. And E3's so close!

What a f***ing great day...

will drop today

you could buy 2.5 million new xbox360 premiums. So, it's gonna cost them much less to repair/upgrade these consoles.

xb360s break.... ok ok... alot.

For all the 360 fanboys, the fact the system wasn't made right to begin with was wrong. It is good that MS is doing something about it though. For all the PS3 fanboys, stop wishing the 360 would die. If there was no 360 or Wii sony wouldn't even be thinking about a price cut, working there asses off to make some kick ass games, and trying there hardest to make there online service better. Competition is good fellas. I remember all the terrible games I had to deal with when I had my atari and my nes. With competition like it is today we will see fewer and fewer bad games. stop hatin!

where's TheMart to spread his propaganda? j/k :P

Honestly, 2.5 million defective consoles? That's really not good publicity for MS. I don't think they'll worry too much about it. With extended warranties, MS is practically saying, "We know your console's gonna crap out on you sooner or later."

With E3 coming up, people will most likely put this out of their mind when, and/or if Halo 3 blows up (in a positive way).

So its %25 defect rate as opposed to previously announced %33. Still pretty high but good thing the warranty was tripled.

on second thought, keep him there. q:

SONY = -1%
Micro$haft = 25% and counting

...but still some XBOTS just don't want to believe it. Sad souls indeed. HAHAHAHAHA

[Edit]@DrRage77......Unlike you, I'm not going to ask you anything. I'm just gonna tell you to STFU....hahahaha Quit being in denial, except it.

So I guess that makes it a 9 million install base not 11.

It doesnt mean the problem is still going to go away you think even though that Microsoft cancelled one manufacter that will solve the problem oh yeah that will help alot NOT!! considering the way its built its still going to have the red ring of death! even though that Microsoft paid for another manufacter its still going to have this problem and when the batch for this year comes its going to have that problem no matter what manufacter makes it and I dont think that Microsoft told the truth for crap cause if they did I would like to hear it from Peter Moore and dont give that "we're still working on it excuse!" considering there not.

I don't know what the fuss is about with 360's breaking. ??

I mean, it isn't the first time that M$ made and marketed a pile of turd, WINDOWS anyone ??

reason #23,765,924 not to own an xbox.

2.5 million, wow
Also, go figure why the 360 sold quite a lot, everyone have bought two each (yeah, a bit pissed atm, my brothers 360 just died, a month after the warranty was out).

3 year warranty is very good and taking care of past repairs and repaying owners is good. I love my 360 and the games and the ones coming its a matter of choice and I choose 360 and some will choose the WII or PS3 the GAMES for the 360 ROCK Thanks MS for the new warranty GAME on everybody.

You wanted it xbugs and now you have it haha

will any 360s make it past five years. its not looking good after only 18 mounths 2.5 million have failed

i reckon the failure rate is 100% over a five year period

Im you have the three rings of death and nobody else can help maybe you can hire A-Team

How ya gonna call when the warrenty runs out Ghost-busters

so pathetic, nice 1.1 billion loss. MS really knows how to make pieces of crap, (xbox, windows, vista, etc.)

Maybe I'm mistaken, and someone can clarify this Class Action Lawsuit.

Does accepting free repair, or reimbursment for past repairs disqualify a customer from joining in this lawsuit? If so isn't MS just covering its A$$?

How would pictures prove anything? MS will never release the actual figures, and because they've been replacing broken units with refurbs, those figures can be sku'd and convoluted to no end.

I remember the DRE Class Action against Sony, for the PS2.
http://www.gamasutra.com/ph...

Sorry but MS 3 year warranty is a much better deal, no?

Where did the 25% figure come from? Certainly not Microsoft.

"No, I'm not putting a metric on it. It's difficult to put a metric on it, but quite frankly, when we say it is unacceptable, it is unacceptable. And that's our metric." Peter Moore 6/7/07

Microsoft does not need to make hardware. They need to Hire SONY to make a console for them and just focus on Software. I love the games on the 360 but the hardware is a piece of $hit. Sony PS3 has a less than 1% failure rate so maybe they need Sony's help. The main reason why all previous consoles went under is cost of hardware and it looks like Microsoft is heading down that road like SEGA and maybe they will just focus on making games for other consoles and the PC. That's where the money is if you can't make a stable console. I think in the end the only consoles will be by Nintendo and Sony because they make good hardware that last. There are still alot of PS1's and original Nintendo's out there that still work but the 360 can't even make it two years. It is just sad.

I think this move, by extending the warranty to 3 years, is great move, you know why?

1. Early when MS started hearing about the complaints, I don't think MS took it as serious, and treated it as a tiny percentage of isolated cases. Because of that, I think they extended the warranty to like a year and thought they could get away since it might of been just a bad batch or something.

-But they continued to ignore it and the cases started adding up, so now MS had to really take step back and see exactly what is causing the RROD. While they were doing that more cases of failures were being reported, so now it is a serious issue.

-They have 10 million+ gamers out there, now how do you cover the consoles that might over heat? while you continue to treat the consoles that are reporting the RROD?
***************************** ******************************* ************
A. MS can replace over 10 million consoles, which would be gazillion dollars, and really would be taking 5 steps back with every step forward.

B. They can extend the warranty for 3 years, for users that have experienced the RROD, as there are a lot out there. If it is every xbox360, that is susceptible, then in three years they will know. If not, then they don't have to replace the given console, as if they would of gone with PLAN A, spending unnecessary money.

b. Plan B, does not cover gamers that have not experienced the RROD , because it just might not be every xbox360. So MS is playing it by "the red ring ear" hehe. But if you think the Xbox 360's can't last 3 years then we all will know, as all 10 million+ will eventually fail.
***************************** ******************************* ************

With extending the warranty, they don't have to replace every xbox 360, even if it has not experienced the RROD, which saves money. If they have isolated the issue and found a viable fix, then in the long-term, those xbox 360's hopefully will break down before the 3 year and get replaced or fixed with the new solution, by then eradicating all the bad Xbox 360's.

Then if you xbox360 last 4 years , then you have nothing to complain about, just like a computer/component that might fail after 3+ years. Well lets hope that is not the issue, but Xbox360's will be like $250 by then.

Of course people will complain about a 3-year warranty, when most electronics companies don't offer anything close. So why ask the questions, "what if the Xbox fails after 3 years?", well that is the same with any electronic device you buy, it might fail after the warranty is up. Just as your car engine seized up after the warranty period or something. No difference. Take it for what it is, if you have had the RROD, then you are all set for 3 years, if not, we can only hope it doesn't appear.

cuz ms is doing a good job!

the more 360 crashes the more u need ppl to work for customersupport and there will be less unemployed ppl out there!

big thx! :D

Just because I need to justify buying my more expensive console, I'm going to hate other console that is doing better with a fiery passion.

Even when there is good news, and M$ is taking steps. More than Sony ever did.

Only fanboys of another camp would try and spin this in a negative way.

Why is everyone so quick to forget Sony never replacing PS2's. Just because it was last gen, doesn't mean that Sony didn't sh1t on their customers. Theres no denying that cheerleaders.

I wonder if Sony runs into a similar problem if they would do this for there customers... hmmmm.. I've had to send my 360 back once, I bought it in Nov of 06. Since then no problems. Now to hear a 3 year warranty and giving money back to the people who had to pay to get theres fixed is great. I wonder...Sony would...who knows. People are willing to pay for there 360 to be fixed not only cause what they paid for it, but because its great. My PS3 will never go out though....cause I don't play it. Glad it was a gift.

I don't understand I never has a problem with my system, or maybe it will come later I hope not. I did get the red lights two times and I turn it off, and restated the 360 and everything when well. I hope they don't come back, with statistics that your showing there more likely too. This freaks me out!!!

tut tut i wonder what moore and bill are thinking.

Out of 11million?? Wow...that's not accaptable. I hope whan I buy a 360 it won't have any problems.

Sony said, "this is not a sprint it's a marathon" They took thier time and release a reliable hardware. I have both consoles and I feel so much more comfortable leaving my ps3 on all day then my 360. My 360 is so loud compared to my ps3.

$1.1 billion / $400 is what fox news did to get this number...... there are so much more costs associated with that like labour, shipping/packaging and cost of call representatives.

why do SOME people still think the ps3 cost too much after the 100 price drop. because im sure most people who buy 360 now would b getting the 60 dollar warranty which makes the ps3 only about 40 more then the premium which most people buy and less then the ELITE with the warranty. it would b stupid 2 buy it without the warranty. and 1.1 billion dollars will set them back alittle.

this is all fine and well but when mine broke I just got a new dvd drive and swapped them so they refuse to fix mine now that it's truly broken so whatever I am still screwed as always

ok i love xbox and i loved gears but this red ring of fire song on youtube its pretty funny, but any way no lie i was on my 3rd 360 and my other two freinds one was on his second and on 3rd so we decided to trade them in for ps3 and they havent broke yet for any of us now it was only 2 months ago but i do miss my x360 and halo3!

This is bad news for MS. I see some of you are so drunk on the 360 kool-aid that you're willing to stick it out despite having gone through several consoles; but there are a growing number of people who've been debating which system to get and are going to choose PS3 over a console so likely to break. It's not like we're talking 60 bucks for one of these things; it's almost an investment. Choose whatever system you like but if you choose a 360 don't be upset at anyone but yourself when/if your system breaks and you have to wait 2-4 weeks for a replacement.

I've never had ANY console fail on me - including my LAUNCH 360 and Thompson Drive XBOX - both which were supposedly "BAD".

My Sony and Nintendo products have worked flawlessly also. Though each controller is different, each feels "right" when I'm playing it.

Anyway, I bought a 2 year extended warranty for my 360, but have not had to use it - so I guess I'm covered for another 6 months on any issue and for the next 18 months with the RRD.

But do you guys see why competition is good? Sony is really starting to pick up speed with the PS3 and Nintendo, well, you know. Competition means that Microsoft HAD to do something. Bottom line - its good for us - the gaming public.

Peace, all!

i wonder what the company who built them for Microsoft has too say about this.

this is Microsoft big weakness.
they are not a hardware company so must rely on others.

allot of money in the air.

ITS STARTING TO LOOK LIKE WAR !

i wonder if Microsoft will invest in hardware manufacturing facilities before the next Xbox ?

Because all of the new consoles are just as defective as the old ones from 1 year ago.

It Must mean that the main problem with the console is one of its most expensive or important pieces. Meaning that to really fix the problem they would need to radically alter the machine such as get different processors or a new type of mother board or something big like that that would really alter the games.

So the reason why microsoft has only made first aid more responsive instead of attacking the problem head on is because they cannot without sacrificing the machine.

Thusly they are pretty much screwed. From a profit standpoint at least but not from a revenue standpoint.

All fears about buying something faulty have been dispelled. This is not good news for Sony, cause really what warranty can they afford to offer. M$-too bad , so bad, love your system, couldn't care less about your corporate bottom line.

Consumers, and clientele -great news!

We all know how reliable Fox News is, right? heh.

MS has had an ungodly number of console failures. I'm glad they are extending the warranty. However, it does make me wonder. I have a launch console still. I've never had any problems with it. Should I purposely try to trigger the red rings of death to get them to replace it with a newer improved model? Or should I just hope to god that my 360 doesn't break come 3 years and 1 day?

I love the frickin system, but they really should've been on the ball more with hardware.

Iam a father of a beatiful little boy who was born on July 6, 2007 at 3:00 am! =)

are probably related to who assembled them; that is, which factory they were assembled in. Mine is now 20 months old (well 19 1/2), and is in a closed but ventilated cabinet to reduce dust. It was 105 degrees here yesterday and the air conditioner could only keep the house temperature in the low 80's, but after playing Forza for 4 hours, you could barely tell the box had even been on.

edit: Interesting, I have gone from 7 bubbles last night, to 6 this morning, with out posting anything for about 24 hours. Sony fan boys need to get a life, instead of hunting for XBox users to de-bubble.

supporting microsoft 25 % defect rate as if this is no problem. Wow. It is like me supporting ps3 for its outrageous price.

im a father....
my girl gave me a beatiful little boy who was born on July 6, 2007 at 3:00 am! ; )

thanks nice_cuppa!

God don't you guys get tired of bashing? My ps3 won't go out cause I don't play it! Who gives a rats a55 if you play your ps3 or not?
Also you can say what you want but when you make it on the national news my friend for your console being a piece of sh!t that hurts. I mean there public perception has been hurt and this has definitely damaged the xbox 360 perception no other way to slice it. I mean parents watch news and when they see this the are not going to buy there kids an unreliable console. Who wants to send lil billy's console in every 8 months or so? I don't! ALSO THE BIGGEST THING HERE, WHICH NOBODY IS PAYING ATTENTION TO IS THAT MICROSOFT STILL HASN'T FIXED THE HARDWARE THAT MEANS THAT THE PROBLEM IS NOT GOING AWAY THEY NEED TO FIX THE HARDWARE, NOT JUST KEEP SELLING SH!T IN A BOX. ALL THE GUYS SAYING THIS IS GOOD FOR MICROSOFT AND THIS MAKES THEM LOVE THEM MORE ARE IDIOTS. WHY IN THE HELL WOULD YOU WANT TO WAIT FOR YOUR 360 TO COME BACK. YOU CANT PLAY YOUR GAMES WITH OUT THE CONSOLE NOT TO MENTION THE INCONVENIENCE OF GOING TO UPS TO SHIP IT OFF.

EDIT*
ALSO HOW DOES THIS HURT THE NEXT XBOX? I KNOW I WON'T BE THERE DAY ONE AGAIN. THIS JUST REALLY PISSES ME OFF CAUSE THE FIRST XBOX WAS A TANK

They will abandon their customers once again after a short life span(like the other Xbox machines). This is why i trust Sony products a lot more. I'm happy with my blu-ray machine and the short list of titles for now (A lot more to come though)....However I know the PS3's life span is going to be a lot longer than the 360...Also this is another HUGE setback in Microsoft's financials (already around $6 billion since getting into the gaming industry) I know MS has more money then anyone but enough is enough...don't be surprised shareholders finally step in and some class action suit arrives and has MS pull the plug in the gaming industry.

and 2.5 is nearing pandemic which would have called for recalls by american standards so no i dont believe it.

oh look theres a pig flying about , do you believe me ? ..

whats this site coming to .

why dont the haters give it a break lol .

enjoy what system you have and stop bashing ,

another group sony betty c0ckers talking crap...microsoft is aware the issue and is making changes Plus another three year warranty for free...sony c0cks are always looking ways to post crap to make there blueray movie station as a perfect device. Of course its perfect, it's was made to watch movies not play video games!...360 all they fools!

Ill be a happy wii60 gamer.

Umm.. ok I down for the 3yr warranty but umm i like playing my old consoles like xbox and ps2. this 3yr warranty won't cover my xbox after this gen is dead and gone. 360 need to be built better so we can play their games, which are top notch right now, for years to come I mean once xbox 720 comes out i dont want not to be playing all my good 360 games cause my three yr warranty is over and my 360 just died. That is another reason this is major and they need to fix this.

For bringing this article to everyones attention. I just find it funny how 3/4 of the posts in this thread are from PS3 owners who have no vested interest in the 360 beyond bashing it. All I can say is enjoy it, because it's going to come back at you 10 fold..

Some of the comments here are just absolutely ridiculous off the mark and downright lies. MS is owning up to a problem and you people are trying your hardest to spin this as a bad thing. Do you think you are going to convert one person over to the PS3?? Hell no! The 360 has a lot to offer even with the hardware problems that now seem to be on their way to being corrected.

I think some people missed the news that MS has changed some of the internals on the 360 to cool better and fix this problem. This is why it's taken some time to come to this announcement, because they needed to research the problem and then apply a fix.

If the PS3 is so great then go play it! You spend more time bashing the leader of the pack then playing your precious PS3. But I feel you, because I don't play mine at all either.. It sure is a reliable piece of hardware when it's not turned on that much..

I am a current 360 owner and am satisfied, no problems yet...knocking on wood...

But this is totally unacceptable. Over 2 million units faulty? Shame on you Microsoft.

Why not 2 years? There must be some logical explanation to that.

That's a little bit hard to believe. Is this just an estimate?

I have atleast 70 friends on my XBL account and I know atleast 30 people in real life that have a Xbox 360 and out off all of them I think 5 of them (including myself) have had problems. But Microsoft has done a good job on replacement 360s. If any of you 360 owners are worried that your 360 is going to get the ring of death buy a nyko external cooler, it gave me peace of mind knowing that my 360 won't overheat.

No more Xbox 3! Hahaha!

All of you Xbox fans seem to think PS3 fans are bashing the machine...the answer is yes...Why is it Xbox gamers seem to be in denial ? This is a huge problem and even MS knows it...Denial Denial Denial...one of the first ways of overcoming this is accepting it by knowing this is a horrible machine...I wonder if MS solution to this is to just buy more exclusive content and throw more games out there to recover their losses....Hold your breath on not getting the red ring...Now you have to hold your breath on WHEN MS is going to pull the plug on something they got into and not making a penny off of. Please check into MS Anonymous..they're having meetings..."I'm a dooped Xbox consumer and I admit I have a problem"

I know Sony fans will use this to bash Microsoft, but you’ve got hand it to them: they are taking it on the chin and doing the right thing. As gamers, most of us have no idea how complicated it is to make these consoles. There is a problem and they are doing what they can to fix it. Now let’s move on.

Sony had problems with Blu-ray discs rotting. They recalled and replaced them. We moved on.
Sony admitted putting out a substandard “5th Element” Blu-ray disc. They recalled them and we moved on.

This kind of stuff happens to both companies. They have both stepped up. Let’s talk about real issues.

MS is going to press the Halo button and im sure everything is going to be okay.

3 year warranty support to fix all of their flaws at their expense(now that`s standing behind your product!) And the best version of Virtua Fighter with online support WOW!!!

You know I have had 360 problems and actually own two of them and this kind of news really hurts to look at but I will still support the 360 because I know things will change! I mean at 1st I could careless about a MS console and was more of a Playstation kind of guy but they did some things and still are doing things that make me look at the PS3 and the Wii like there pretty much jokes! If it were not for all the great games and services on 360 I would have just said screw MS but honestly I feel they are doing right by addressing these issues! A 3 year warranty is great and no matter how much negativity I keep hearing from fanboys it still for some reason doesn't change my view of the 360 being a great console because it is! E3 is on the way and I have a funny feeling that even with this news MS is going to have there best showing yet!

Sony fans are just mad they purchased a blue ray player and not a console...HAHAHAHA.....some stores are now selling you the PS3 with 5 blueray movies...act of desperation?? why not games and only movies? ooops thats right sony has no games, but lots of movies! Get a 360 you sony fancocks because there only so much movies you can watch but many games to play!.

3 year warranty!! that right there is what I was waiting for now I just need to save up the money to buy one. With a 3 year warranty I have little to no worries anymore.

Quick Question. If 2.5 million units are replaced does that number add to the Total units sold or shipped??

Anyway good news for all current 360 owners who have had that problem.

I think my 360 is going to blow up as soon as i get my hands on HALO3.

buying a xbox 360 is like playing russian roulette with a loaded gun your guaranteed to get screwed

"360 has all the games.." all you fanboys are alike. Last time I checked 360 had one decent game I actually want to try, and that's obviously Gears of War. I have a ps2 that I bought from a friend, and I have about 7 games and in the meantime while I wait for ps3 or 360 to aquire some decent titles, that's what's keeping me at bay. Most people praise the console they took a plunge for because they want to justify their purchase, but as far as being objective goes no one here is really on top of things.

Xbox 360s are failing, that's a fact. It's a huge setback, enourmous, even if the online service is better and it does technically have a greater selection of games, that becomes meaningless when you have to hastle and get your console repaired. It's not about the 3 year warranty, it's about turning on your console, playing it, and wondering "man oh man is this thing going to break?". 33% failure rate? unacceptable. My close friend had his break, and he loves to game almost every day, sure he has the warranty, but now he has to wait to get his console repaired. As far as I can see right now, the Ps3 is beginning to look better and better, despite the higher price and limited selection. However, already you have The Darkness, and Ninja Gaiden sigma, and that would be enough for me.

Retailers are trying to sell the ps3 from two different perspectives, one being the gaming console, the other being the blu ray player. The fact that the ps3 has two major markets supporting it is a huge plus. The other enourmous plus is that video games for ps3 can use blu ray disks. I'm not a ps3 fanboy, i'm not a 360 fanboy, but the way things are going right now, ps3 is slowly catching up to the competition and the long term result seems quite promising. Unless M$ can regain their reputation their horizons suddenly do not look so bright.
Ciao

get off that childish blu ray only crap, and realize You bought a piece of crap. The bad press the MS is getting is not good by any means don't downplay it and don't deny it. Whether you like it or not this is good news for nintendo and sony. You can sale stupid people garbage and they will except it for what it is. You get what you pay for in this world, and 2.5mil or more just realized that. You're right AJM I do have a blu ray player, lucky me. I also have a sweet ass gaming console too. Plus it doesen't break down because I payed for quality. To bad M$ To bad.

I think M$ is loosing more money than SONY is. The reason why i think SONY is not loosing alot of money is becasue of the ps2, they are making some money with the ps2, i could be wrong. 1.1 billion is alot of money, M$ is spending more money fixing those consumer's problems than they are making with the console. (my opinion)

Let's see what MS has in stored for us in the future to fix this situation. "You can do it!"

Gaming console??? dude the only consoles out there are 360 and wii...as far as I know your PS3 belongs in the sections where they sell DVD players,hddvd players and VHS. Us 360 fans dont mind sending our consoles for repair...Poor sony fans, they like flaming articals and talk about the saaaaame crap thinking were going to turn to the PS3 and give up video games to watch blueray movies...dream on suckers

Hey, who knows, maybe PS3 has heat problems too. We may never know, as most of them stay off all day, there is nothing to play on them.

It was smart of MS to come out with the warrenty news just before E3 and months before all the good games come.

This news before E3 will num the pain and help brush off fanatic Sony fanboy haters. MS announced this warrenty new months before the heavy hitters and secrets come out so we as gamers can take in and heal from defective 360's and the increasing of rabidness from crazy rabid Sony fanboys.

* People will say wow atleast MS is fixing the problem and we get an unusually long warrenty current owners and soon to be owners.

* A couple of months down the road people will say i'm going to think about the 360 it has more games and they do have a great warrenty.

* A few months down the road people will say im getting a 360 because it has some cool games I not worried if if breaks the warrenty is the best on the market

* And just after that people will say remember when MS had all those problems.

People will talk some sh*t the bulk of consumers will simply move on and play games thats a very high end warrenty for free.

Exspect MS to come out with some buge news that obviously gave then the confidence to come out with this news thinking the news will soften the blow a few days from now.

Why would a warranty for three years make it ok for someone to buy a piece of SH!t. I'm talking Hardware cause 360 gots games. The guys above me are total MS Fanboyz.
the console breaks down it is not a good thing. I dont even give a damn about comparing it to PS3. It would be just as bad if the xbox 360 was the only console on the market. Thats like buying a car with a 7yr warranty that breaks down every two years. How da hell do you get to work when your cars in da Shop? Basically you cant play games if your consoles out for repair. Also stop with the blu ray player comment its old doesn't 360 play dvd? yea thought so guess its a movie player too. 360 would have blu ray but the didn't wanna be in the same price bracket as sony plain and simple

Exactly, GetOUT, I agree. The 360 consoles are breaking, fast. Chances are, not only will one have to repair their system during the 3 year warranty lifetime, but also repair it after that...and repair it again...and again...and again...hahaha. People who are saying "great! now more people will buy a 360 due to an extended warranty"...no just no. Are you telling me, I'm going to buy a system, with a 33% failure rate, just because I would feel safe that I can repair it during 3 years. To me it seems microsoft is saying : "Yeah, the xbox 360 will probably break on you...but don't worry...we have a 3 year warranty to cover your ass"....please, someone start making sense!