Xbox problems cost Microsoft $1 billion
FROM VARIETY: Tech giant extending warranty to three years
By Ben Fritz of Variety -- Video Business, 7/6/2007
JULY 6 | FROM VARIETY: Defective Xbox 360s will cost Microsoft more than $1 billion on its bottom line.Tech giant announced Thursday that it will be taking a charge of between $1.05 billion and $1.15 billion and is extending its warranty to three years to address frequent problems in its videogame console.
In a conference call with analysts, chief financial officer Chris Liddell said about half of the charge will account for the extended warranty while the other half is for repairs under the existing warranty.
Read the full story on Variety.com.
