| superchunk said: 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. |
Actually, they may make some money off of there PRPs, but for the most part its a break even venture. Its generally there for the customer to come back to the store in the future. TVs cost a lot to repair these days.....way more than what the PRPs cost yet companies still offer them. The reason for this is that while it costs more to fix TVs that break, there will be less that break than dont, so you break even or maybe post a small gain. The problem with the 360, is that its pretty much a given that its gonna break, so companies will go bankrupt if they keep fixing/replacing them. This news alone should wake people up to the fact that the 360 is garbage. Then again so should the 40% defect rate. Just goes to show that people will buy anything these days. I bet if M$ put a disclamer on the box in big red letters that said " Not Guaranteed to work, try at your own risk" some sucker would still buy one.
