There's just so many things wrong with that. This completely sends the message that these plans are for their benefit and their benefit only.

Before, you can always say that its a service, no matter how horribly priced it is, that can be of help to some people. But this just says that the only time when it might be to your benefit, they'll refuse you.

It stinks too much of insurance companies that will gladly take your money while you're healthy and then the moment you get sick, dump you and make a run of it.

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.

yea i think this was posted .. but obviously rrod issues are getting to the point of non profitabilaty

My friend just had to send his XBOX 360 away for the third time in almost two years. I told him it was ridiculous and he shrugged. Do 360 owners care that their machines are terribly made? And I want one but these issues just keep me a little at bay.

For their benefit only? HAHAAHAHAHA This is America pal! You didn't think they were doing it for profit? Profit is their only motivation. If they couldn't make money off of it, and evidently they are not, then they will stop doing it.

I like the bottom warning. SMG is getting an instore demo it seems.

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.

it is either drop the warranty all together or probably double the warranty price. the main problem was probably RROD right? and now microsoft is covering those, and gamestop doesn't want to deal with the huge hassle of it all.

 I think it's an issue of not really having anywhere else to game. They can find a similar (although at this time inferior based on overall software) experience on the PS3, but it costs way more. If you're a fairly commited gamer with a 360, I don't think the current line up of Wii is really gonna do it either. So the only really financially feasable option to continue playing the type of games that appeal to them would be to bite the bullet, get that free replacement and watch some porn for the next 2 to 4 weeks.