Microsoft says it will give a retrospective 3 year warranty to all owners of Xbox 360 consoles. Here’s a snippet from the press release:

As a result of what Microsoft views as an unacceptable number of repairs to Xbox 360 consoles, the company conducted extensive investigations into potential sources of general hardware failures.  Having identified a number of factors which can cause general hardware failures indicated by three red flashing lights on the console, Microsoft has made improvements to the console and is enhancing its Xbox 360 warranty policy for existing and new customers.

While the whole world knows that the 360 is unreliable, this perhaps Microsoft’s first public confession. An extended warranty is good; but prospective purchasers may be even more interested in the “improvements to the console” mentioned above. Has Microsoft really found a fix to the design fault(s) which cause the problem?

Another unanswered question concerns the DRM which causes problems for users who return consoles for repair and get back a refurbished unit that used to belong to someone else. This is a common practice in the IT industry, and normally it makes good sense, because you get a replacement quicker. Unfortunately it is a flawed plan with respect to the 360, because purchased downloads are tied to the machine on which they were downloaded. See this thread for the gory details, lots of unhappy customers, and Microsoft’s inconsistent response.

You would think that someone at Microsoft would have realised even before the launch that this was a likely scenario. Of course it is made worse by the high number of returned machines. Surely Microsoft can work out some way to allow customers to re-download the games they own, fully unlocked, to a new machine. Currently the mechanism seems to be: argue with customer service until you get your Microsoft Points refunded, then re-purchase the games. That is a disappointingly crude mechanism. 

Here’s another thing that puzzles me. Let’s presume that the Xbox 360 has a design fault, to do with overheating, that makes premature failure likely. Reasonable, I think. So how long ago was this fact apparent to Microsoft? I’d have thought it would be well over a year ago. I recall users complaining about repeated red light incidents in early 2006. Why then did Microsoft continue turning the handle and manufacturing machines with the same flaw for so long?

Still, users will be grateful that Microsoft has had the decency and the resources to admit to the problem and fix at least the hardware side of it for free.