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The X-Clamps on the Xbox 360 motherboard (Source: AnandTech)
Console service company Micromart will no longer repair Xbox 360 due to alleged design flaw

UK-based game console repair company Micromart has been fixing video game systems for over a decade. On its website it advertises that it will repair PlayStation 2, original Xbox, PSP and replace screens for other handheld systems.

Micromart, which used to repair the Xbox 360, recently posted a notice on its website that it “has now withdrawn from offering a repair service for the dreaded 3 Red Lights fault.”

The company states that, “This problem is endemic on the Xbox 360 console and the volume has made this repair non-viable.” Micromart will also no longer fix Xbox 360 consoles that display screen freezing problems. The company, however, will continue to support all other repairs to the consoles.

“We were seeing about 30 a week before we pulled the plug on the service,” said Micromart’s Jeff Croft to GamesIndustry. “We saw it over a period of several months and it was just getting worse. It began towards the end of last year. Once the twelve month warranty finished then we started to see more and more machines being sent in to be looked at.”

“The work we had done to the console lead us to believe that basically it was a fault with the motherboard and not something that could be resolved easily. And it wasn't going to go away,” continued Croft.

 “We're not taking that thing on board; we won't repair them. We originally did some work with it but it's labour intensive and it isn't really a feasible repair for us to undertake. We would probably end up charging GBP 100 [$202] for a repair and we still wouldn't be happy with the end result,” he added.

A recent investigation by DailyTech on Xbox 360 warranty returns revealed that up to a third of Microsoft’s latest console fail.



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RE: At what point...
By mdogs444 on 7/3/2007 11:50:16 AM , Rating: 2
Perhaps not 99%, but the idea was that the consumer pays for it in the end, in one way or the other. The companies will increase the prices of other products on the market in a similar category, or increase the prices of the next gen console in order to make up for losses. After all, the bottom line is the shareholders, and increasing the stock price. One way or the other, it needs to maintain or go up, and making money from their products/services is how its done.


RE: At what point...
By TomZ on 7/3/2007 12:18:18 PM , Rating: 2
Companies set prices based on the value of the product to the consumer, not based on the cost to produce the product. Therefore, the price is usually as high as the consumer/market will bear, and therefore, higher-than-expected warranty costs are more likely to come off the company's bottom line.


RE: At what point...
By Timeless on 7/3/2007 6:56:41 PM , Rating: 3
Maybe Microsoft is trying to follow Sony's footsteps with the PS2. IIRC the PS2 had a high failure rate when it first came out too. And in the end, Sony had the most consoles sold. Maybe Microsoft is taking taking it to the extreme this time with its Xbox360. Pretty interesting idea if you ask me...


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