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Microsoft May Pay $1.15B To Fix Faulty Xbox 360s

Law360 (July 6, 2007, 12:00 AM EDT) -- After over a year of bad publicity over what has become known as the “red ring of death” on their Xbox 360 game consoles, Microsoft Corp. on Thursday said it would begin what may become one of the costliest consumer warranty repairs in history.

The Xbox 360 first went to retail in November 2005 and in the following 18 months sold about 11.6 million units. However, consumers soon started reporting hardware failures in their game consoles, denoted by three flashing red lights circling the Xbox 360's...
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