ckmlb said: 1 billion dollars because they made a crappy system. Double edged sword really: first it costs them money, but they reassure owners of the 360. On the other hand this sends a signal to everyone else who was going to buy a 360 that the failure rates are definitely massive if they are going to all this trouble to cover it.
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Yeah, they are taking a gamble. They are hoping the relief it puts into gamers minds (I know that just seriously boosted my chances of buying one soon) will outweigh the losses caused by offering the deal. If the 360 is dropped to 300 and the PS3 to 400 it's gonna be tough for me to decide which to get first now. Probably the 360 for the better (currently) game library, but before it would have been the PS3 due to failure rates.