Microsoft's Xbox suffered the "Red Ring Of Death" syndrome

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For many months, owners of the Microsoft’s growing business, the Xbox, have long been annoyed by bunch of blinking red lights on the front of the console. These red lights signifying an error message is also known as the “Red Ring of Death” syndrome.

According to Geoff Croft, a Micromart representative, the motherboard is the problem. He also said that a lot of components are soldered to it, and because of overheating, there’s a faulty contact between the parts and the motherboard.

Microsoft said Thursday that it will take a charge of $1.05 billion to $1.15 billion for the quarter ending June 30 to cover enhanced warranty coverage on the Xbox.

In a statement, Microsoft said:
As a result of what Microsoft views as an unacceptable number of repairs to Xbox 360 consoles, the company conducted extensive investigations into potential sources of general hardware failures. Having identified a number of factors which can cause general hardware failures indicated by three red flashing lights on the console, Microsoft has made improvements to the console and is enhancing its Xbox 360 warranty policy for existing and new customers.

In an open letter on the Xbox site, Microsoft’s corporate vice president of interactive entertainment Peter Moore said:
You’ve spoken, and we’ve heard you. Good service and a good customer experience are areas of the business that we care deeply about. And frankly, we’ve not been doing a good enough job.
Microsoft said it will reimburse anyone who has incurred repair expenses. The charge was portrayed as an “investment in our customer base.”