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Wasn't this already posted a few days ago?

Basically this is saying that the almost certain profitability from selling an extra warranty on the 360 does not exist as it does on other reliable products.

Anyone who has ever worked in retail knows that these warranties are somewhere near 90% total profit for a company. So, the only way they would stop offering one is because the products defect rate was so high that they may actually lose money and that is really bad for MS in this particular case.