Xbox games console's red ring of death costs Microsoft $1bn
Franky Micklestone  |  by business.guardian.co.uk. All rights reserved. 6.07 | 17:13

Search all jobs You can use them anywhere, and now even China falls to the might of the BlackBerry Interest rates: Increase puts squeeze on homeowners 1,100 staff sacked as Kwik Save collapses Xbox games console's red ring of death costs Microsoft $1bn Microsoft is paying out more than $1bn ( 497m) to repair chronic problems with its Xbox 360 games consoles, which break down in a fault known as the "red ring of death". The Seattle-based company said last night it had been forced to make an "unacceptable number of repairs" to the machines, which went on sale in 2005. The fault triggers three flashing red lights on the console, indicating a general hardware failure.

On internet messageboards, the problem has been dubbed the "red ring of death", or "bricking", because the machine becomes no more useful than a brick. Microsoft has decided to extend warranties free of charge to cover a period running for three years from the date of purchase, following widespread complaints. The company will reimburse anyone who has paid for repairs to date.

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