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A class action lawsuit seeks $5 million and free repairs

When Microsoft released the Fall Dashboard Update for the Xbox 360, users expected 1080p, HD DVD, WMA streaming and more. What no one expected was that the update crashed consoles, rendering them mostly useless. Microsoft quickly acknowledged and fixed the problem, and advised those who had bricked consoles to contact Xbox tech support for further instruction.

More than a month after Microsoft’s dangerous Dashboard, a Californian man is leading a class action lawsuit against Microsoft after his own Xbox 360 was disabled by the update, according to Ars Technica’s report.

Apparently, after contacting Xbox tech support following the faulty update, Kevin Ray was refused repair of his console unless he paid the usual $140 charge that Microsoft requires for servicing/exchanging a machine. The class action suit filed in a Washington federal court seeks over $5 million in damages in addition to free repair for all Xbox 360 fallen victim to the Fall Dashboard Update.

Microsoft only warranties Xbox 360s for 90 days following purchase, but users have the option to purchase extended warranty directly for an added fee. Failure rates have been abnormally high, especially among launch window consoles, that Microsoft has agreed to repair all machines manufactured in 2005 free of charge, and issue a refund for those who already paid for repairs of launch units.

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RE: ?
By kamel5547 on 12/11/2006 12:07:13 PM , Rating: 2
Well considering the general lack of profit form selling the hardware I doubt Microsoft is interested in selling more X-box's than it needs to.

TO tell the truth I have friends who went through tons of X-box's and PS2's... makes me wonder if the operating environment plays a part. It seems to be the exception rather than the rule IMO.

RE: ?
By BladeVenom on 12/11/2006 12:33:09 PM , Rating: 2
While they lost money at the start, costs have fallen, and I've read that they are now making a profit on each console sold.

RE: ?
By h0kiez on 12/11/2006 1:05:06 PM , Rating: 2
Eh. It was reported that the cost to build one is $75 less than the retail price. But that doesn't include retail markup, shipping, packaging, etc. So it's tough to say, but I'd guess they're making very little, or breaking even on each console. Give it a few more months and another die shrink and then they'll really be making money on them.

"Young lady, in this house we obey the laws of thermodynamics!" -- Homer Simpson
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