Microsoft’s Next $1B Xbox Mistake?

Being popular can be dangerous if the attention brings liabilities. Microsoft found that true when, back in 2005 and 2006, many of the new Xbox 360s developed the “red ring of death,” eventually forcing the company in 2007 to extend the product warranty and take over a billion dollar charge to cover the necessary repairs and replacements. Now there’s a new problem, called the E74 error, that is also causing a hardware failure and shaping to be not just another public black eye, but, given the volume of Xbox 360s that have sold, possibly the source of another massive charge to cover unit replacements.

Source: BNET