Microsoft has recently recorded a pretax charge of $1.15 bln to extend its warranty coverage for its Xbox 360 gaming console from 1-yr to 3-yrs, after receiving 'unexpected' calls for repairs.

Today, Contel Corporation announced that it has won a multi-million dollar deal from Harmonix Systems to develop and produce 'Rock Band' game controller, modelled with a Fender Stratocaster electric guitar. This programme will then be made compatible with Xbox 360, which is undergoing a lot of repair works, and even Playstation3 for Holiday 2007.

Products like these usually goes to popular gaming devices like the Xbox 360. To have faulty components may cause the product to be unpopular.

The Xbox 360 was launched in November 2005, by which 11.6 mln consoles were being shipped around the world. According to The Wall Street Journal on 9 July 2007, Monday, 5.6 mln of the Xbox were sold by U.S retailers alone.

In the article, it also added that in previous three fiscal years, Microsoft saw operating losses, especially coming from the Xbox 360 division. It was reported by a user that “too much heat being generated by components”. Microsoft says it will be reducing its earnings per charge for the quarter by 7 to 8 cts.

These days, products, especially gadgets, gets smaller by the day. The smaller the components, the chances for it to overheat tend to be higher. So by having a normal quality check (QC) is not enough anymore!

My reasons:

First, it is inconvenient for both the supplier and consumer. If it is faulty, the user has to send it for checks or repairation. The supplier will have to cover costs as mentioned in the warranty. If it's just a handful of people coming back for checks is normal--- technology is bound to have some fault in them. But if those number gets out of hand, in the case of Microsoft's Xbox 360, then something has yet to be said about its components.

Second, it could well be dangerous! Overheating, may lead to fire and the age demographics for Xbox 360 stretches across to the younger generation, who may not necessarily know what to do in cases of emergency. Take for example the Osim's uZap MINI recall because it was a potential fire hazard. At the end of the day, safety comes first.

Recall or repair works under warranty means more money had to be spent to cover these expenses.

In money sense, all these things could have been prevented if there had been more thorough or extensive checks for the products. Products like the uZap MINI and Xbox 360 has been known to overheat, and so possibly is the case for other gadgets as well. To avoid all these, as the saying goes, 'prepare your umbrella before it starts raining'; in other words, why not invest in a bit more doing extensive checks like overheating and all, pay a bit extra now, to save the potential bigger spending afterwards doing repairs and recalls. This would not look good on the product profile.

What do you think?

Nurwidya Abdul

Labels: fire hazard, Microsoft, Osim, overheating, QC, quality checks, uZap MINI, Xbox 360