Distribution Business Articles

Microsoft extended its Xbox 360 warranty just in time for Christmas.  Previously Microsoft had offered a 90 day warranty out of the box on the Xbox360.  The company extended this warranty to a full year.

Microsoft didn't stop the Santa routine with the extension, as they also took measures to protect existing customers.  Any customers that had their 360 repaired after the 90 day period will be issued an automatic refund.  The warranty is based on Purchase date and not manufacturing date

No public information has yet been provided to detail how distributors and Retailers will be protected as a result of the change in policy.  Many retailers replace defective products with replacements off the shelf and then ship the defective units back to either the distributor or manufacturer.  Some also take a defective fee calculated based on historical returns and the value of warranty programs.  A recalculation may be in order.