Xbox Live signs 8 millionth members

MICROSOFT’S online games network Xbox LIVE celebrated its fifth birthday this week, with the company announcing the service had signed its 8 millionth customer to market the event.

For a service that had plenty of knockers at launch, Xbox Live has changed market expectations of what a gaming service should be.

And the service is largely credited with keeping the Xbox console alive and competitive in the hyper-competitive market that includes Sony and Nintendo Wii.

Xbox LIVE has grown from a small community of gamers in two countries, playing a handful of games online with their friends, to a worldwide social entertainment network offering online access to gaming, music, movies and TV shows.

Microsoft said it would celebrate the five-year milestone by giving all 8 million customers a free Xbox Live Arcade game – through its new download service.

Starting in early December, all Xbox Live members will receive a free system update that includes a series of new features and updates – including the launch of Xbox Originals,

Xbox Originals will for the first time let consumers download and own full Xbox Games – Halo and Psychonauts.

“In just five short years, Xbox LIVE has revolutionized the way friends and family have fun in the living room,” said Microsoft’s LIVE software and services corporate vice-president John Schappert.

“On its fifth birthday, Xbox LIVE truly is the place for hanging out with friends and enjoying downloadable TV shows, movies, videos, game add-ons and now downloadable Xbox games on demand.”

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Microsoft takes US$1 billion Xbox hit

MICROSOFT has been hit by a A$1.35 billion repair bill for hardware problems with its Xbox 360 game console.

The company said it had set aside US$1.15 billion to fund warranty claims on undetailed user problems with the popular game player.

While Microsoft would not provide details of the hardware issues, it said in a statement that an “unacceptable number” of Xbox 360 machines had been returned by users for repairs, prompting extensive investigations.

The company has extended its warranty program as a result of the investigation.

“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,” the statement said.

“Microsoft stands behind its products and is taking responsibility to repair or replace any Xbox 360 console that experiences the ‘three flashing red lights’ error message within three years from time of purchase free of charge, including shipping costs,” it said.

“Microsoft will take a $1.05 billion to $1.15 billion pre-tax charge to earnings for the quarter ended June 30, 2007 for anticipated costs under its current and enhanced Xbox 360 policies.”

Microsoft’s Entertainment & Devices division president Robbie Bach said for any customer that had already paid for repairs to the Xbox for problems rlated to the three flashing lights error message, Microsoft would retroactively reimburse them.

“The majority of Xbox 360 owners are having a great experience with their console and have from day one. But, this problem has caused frustration for some of our customers and for that, we sincerely apologise,” Mr Bach said.

“We value our community tremendously and look at this as an investment in our customer base,” he said.

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