Daily Mail: Elite RRODs Have Cost Microsoft "£500 Million"

Illustration for article titled Daily Mail: Elite RRODs Have Cost Microsoft £500 Million

It's coming from the Daily Mail, so make what you will of that, but the British tabloid is claiming that Microsoft is setting aside £500 million - which is just shy of USD$1 billion - to help cover the costs of an increasing number of faulty Xbox 360 Elite units. They'll also apparently be offering a three-year extended warranty for Elite owners. Both the value and warranty are the same as those offered last year, when Microsoft was forced to pay up and extend the warranties for owners of original 360s. The Elites, however, were meant to be improved consoles, nowhere near as susceptible to the red rings of death as their off-white cousins. We'll update when we hear something a little more...official, because really, we find it hard to believe they've sold that many Elites.

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£500m bill for Xbox red ring of death [Daily Mail]

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DISCUSSION

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RROD is going to cost Microsoft more then just money, which they have no shortage of. It's going to cost them marketshare and because of that, the year head start they had on both Sony and Nintendo will completely and utterly go to waste. It means that it will take Microsoft not only at least 2 more complete console cycles before they can really get to where they want to be in the gaming world (And people's living rooms), but they gave people a black eye that they will not soon forget.

Sony only overcame the DRE mess for two reasons

1-People were not as connected via the net, IM's and such as they are now.

2-They had such market control that even people who said "Fuck Sony." and sold/returned/threw away their broken PS2 and waited ended up caving in a few years later because if you wanted the best bang for your buck and didn't want more then one system in your house, you owned a PS2.

While Joe Gamer can sometimes have a short memory and depending how the 360 spends the next..3 years, it might be able to sooth some of those black eyes, many folks will never forget it and the time spent pissing around before they came out and said "Okey we fucked up." has caused quite a few people to just pick up a PS3 instead. That's bad news.

Will it break them? No. Will it result in the 360 ending up in 3rd place when all's said and done? Maybe.