NYANKS said:
Okay, I admit I don't really understand this. Did they write off future repair costs for the next few years. It seems like RRoD is still quite a large problem. Are they not incurring debts on top of the 2006 write off for the still significant amount of failures? |
To make this clear, every company that offers a warranty must set aside money to cover the future warranty cover. This will become part of the cost to manufacture a console and lower the profit margin. e.g If the 16% failure rate is correct than for every 7 consoles microsoft manufactures about 1 will fail and this means that for every 7 consoles sold, it actually costs them 8 consoles (very simplified). The write-off in 2006 was because they didn't set enough money aside for the consoles already sold, not future console sales....
PSN ID: T_Gears
End of 2009 ltd sales:
Wii = 67-68m
X360 = 38-39m
PS3 = 34-35m
Prediction: The PS3 will surpass the 360 on weekly sales after it drops to $299 on all regular weeks (no big releases).