Rumor: MS refuses to accept $10 million worth defective Xbox 360's from EB AU

[Zeus]

A rumor has been sparked up that Microsoft is refusing to take responsibility of its defective Xbox 360 consoles, leaving EB Australia with $10 million worth of defective machines. The information is 'revealed' from a supposed associate who has a high position within the EB company.


Over the weekend, a Kotaku AU reader sent through a chat log containing an enlightening conversation with "an associate of mine who holds a high position within the EB organisation". According to the log, Microsoft is refusing to take responsibility for its defective consoles, leaving it up to the games retailer to make the best of a crappy situation.
Obviously we're trying to verify the facts, but for now, there's no reason not to let you guys know of the potentially nasty relationship that may exist between EB Australia and Microsoft.

The transcript had the following preface:


An associate of mine who holds a high position within the EB organisation (Who wishes to remain incognito) has requested that I send in a paste [of] this chat log that details a stand-off between EB Australia and Microsoft regarding faulty XBoxes.
Mysterious, no?

It gets better, after the jump.

According to the transcript, EB Australia has $10 million worth of defective Xbox 360s gathering dust, as Microsoft is unwilling to take them back. As a result, EB is no longer stocking the 360, except as second-hand or pre-owned units. A search of the EB Games website for "xbox 360" confirms this.

"There have been threats of EB dropping the Xbox range all together," says the transcript.

To recoup its losses, EB is trying to repair the defective units and offer them as second-hand. However these units are often returned dead, the transcript states. It also mentions that EB lost $85 per console sold once Microsoft introduced the standard three-year warranty, as EB was unable to offer its own.

"Add to this the fact that price matching got really cutthroat during this past Xmas, they were selling far too many units under-cost and getting a bunch back defective, but Microsoft [refuses] to reimburse for," the transcript says.


News Source: <a href="http://www.kotaku.com.au/games/2008/01/microsoft_refusing_to_take_back_10_million_worth_o f_defective_360s_from_eb_oz.html" target="_blank">Kotaku</a>

[XxBigP123xX]

Im sure they don't want to spend another billion on warrantys;)

They've improved the 360 ALOT since launch, yet it still has problems:(

[11111]

if this is real that's freaking jacked up.

so what's stopping eb from suing them? something's missing.

[RafiPZ]

Bullshit. I doubt Microsoft would do that to the place that probably sells the most xbox 360s. This is EB games they're talking about right?
With Gamestop/EB gone xbox sales would definately head south.

[sigma8]

Bullshit. I doubt Microsoft would do that to the place that probably sells the most xbox 360s. This is EB games they're talking about right?
With Gamestop/EB gone xbox sales would definately head south.

Yeah, but it's Australia. I think EB there may be a separate entity. I know the European (or at least British/Irish) EB was separate from the American EB...this was before the Gamestop merger.

[amrod]

note to EB, EBAY THEM :)

99.9% of them probably just need the x-clamp fix

[benny32]

The RROD is the best business decision MS ever made:). Nothing inflates consoles sales like defective hardware;). MS will release a RROD less 360 slim soon. A slim 360 would give the ps3 a run for its money.

Sony will be fixing the hardware quality of their console by bringing DRE back from the dead with cheap Blu Ray lasers:D. The problem with PS3 sales totals is that not enough of them are breaking and becoming useless.

[SpoonerPSP]

Wow...that's 25,000 faulty units just in AU...and fanboys still say that RRoD is a myth:p

[atrocity595]

MS sucks..

[squall3031]

EB should just stop selling XBOX360 altogether -_-;....
No...actually, all game retailers should stop selling XBOX360. I want Lost Odyssey on PS3 dammit!!!

[cory149]

I know - M$'s warehouse already full, so they don't have anymore room for burnt machines :rolleyes:

[miles556]

Wow...that's 25,000 faulty units just in AU...and fanboys still say that RRoD is a myth:p

Can you imagine going thru 25,000 of boxes of brand new xbox360 machines in order to try playing that Halo game disc in your hand and at every damn box it will throw RROD at you? What would happen to you? What would happen to Halo disc? :eek:

[squall3031]

Can you imagine going thru 25,000 of boxes of brand new xbox360 machines in order to try playing that Halo game disc in your hand and at every damn box it will throw RROD at you? What would happen to you? What would happen to Halo disc? :eek:

hire 25K people and prepare 25K of Halo disc and try 'em out at the same time :D hehehehe

[SpoonerPSP]

Can you imagine going thru 25,000 of boxes of brand new xbox360 machines in order to try playing that Halo game disc in your hand and at every damn box it will throw RROD at you? What would happen to you? What would happen to Halo disc? :eek:

100% failure rate:D

[AlphaTrion]

it it is true then that is truly messed up. but EB sucks!!!!! i bet a more than half of them they tried to tamper with the system!!! we can't just believe they all died on their own!!!!!!

[arashb]

Can you imagine going thru 25,000 of boxes of brand new xbox360 machines in order to try playing that Halo game disc in your hand and at every damn box it will throw RROD at you? What would happen to you? What would happen to Halo disc? :eek:

LOL I'm imagining that right now.... but I wouldn't try Halo, Gears of War probably but Halo? Never...

[atrocity595]

Buy a PS3 :D

[grapeape]

Did anyone actually bother to read the article? Perhaps maybe even read back to the original article about the situation?

http://kotaku.com/gaming/two-weeks/eb-games-australia-issues-360-recall-278562.php

This has nothing to do with the 3rod problem, it was a batch of defective hard drives which were believed isolated to a rather small batch...EB Austrailia took it upon themselves to issue a complete recall all on their own whether the 360's were defective or not on the whole console even though the problem was just with the drive. Its a total f'ing mess but mostly EB's own doing.

[DEDDOA]

Did anyone actually bother to read the article? Perhaps maybe even read back to the original article about the situation?

http://kotaku.com/gaming/two-weeks/eb-games-australia-issues-360-recall-278562.php

This has nothing to do with the 3rod problem, it was a batch of defective hard drives which were believed isolated to a rather small batch...EB Austrailia took it upon themselves to issue a complete recall all on their own whether the 360's were defective or not on the whole console even though the problem was just with the drive. Its a total f'ing mess but mostly EB's own doing.

Wasn't this from like the middle of last year, as I remember seeing siomthing about a harddrive problem with australian 360's then.

That said, I can see then why MS would not accept them, what proof is there that they are faulty. Come on, EB won't take somthing back for being faulty based just on your say so (well the UK one won't anyway) so why should they expect MS to.

No they should have consulted MS before issuing a recall, as it would appear they didn't then they have only themselves to blame.

[andreo]

Nevermind, I didn't RTFA first. :o

[grapeape]

Wasn't this from like the middle of last year, as I remember seeing siomthing about a harddrive problem with australian 360's then.

That said, I can see then why MS would not accept them, what proof is there that they are faulty. Come on, EB won't take somthing back for being faulty based just on your say so (well the UK one won't anyway) so why should they expect MS to.

No they should have consulted MS before issuing a recall, as it would appear they didn't then they have only themselves to blame.

I would imagine in the end MS will play nice and take them back...but rightly IMHO they are making them sweat it out first...it was a stupid thing for EB to do and for MS to just change the rules for them essentially changes the rules for everyone.

[saleem]

expect lots of refurb,repacked console units from retail outlets and repair centres in a city/town near you.
:)

[ku16610]

it it is true then that is truly messed up. but EB sucks!!!!! i bet a more than half of them they tried to tamper with the system!!! we can't just believe they all died on their own!!!!!!


Yes cos a microsoft product is always perfect beyond reproach............

[squall3031]

it's MS's fault to begin with for making such defective product. If it wasn't, then no one would be dragged into this mess now :P

[sens8]

LOL @ Microcopy....crappy software crappy hardware.

[Attitude]

Well this morning i had an interesting chat with the pick up guy who came to collect my psp for repair. I mentioned that we were also waiting for my step sons 360 to be collected for repair and he told me that they were nothing compared to the amount of PS3 60gig premium systems that were being taken back for repair. He said that the 360 returns were nowhere near as many now compared to the amount of PS3's he has had to pick up and replace. I asked the guy what system he had and he said a PS3 so i could kinda could discount him being a 360 fanboy. Now i kinda expect all the rabid ps3 fanboys to reply that either the guy is a liar or i am, but hey who cares :) i know i had a damn good laugh over it after reading all the fanboys comments on here. (PS. i used to work for Sony too so please dont tell me they are gods when it comes to quality control on their products, the things that went through QC were astonishing and the corners that were cut were pretty severe too)

[yourM0M1]

**** EB/Gamestop

[felixm477]

EB stop crying like a ***** and handle your own messes, seriously any smart person would have just recalled the hard drives since the consoles all work well without them rather than the whole damn system.

[DEDDOA]

Yes cos a microsoft product is always perfect beyond reproach............

No but then neither are Sony, but unlike Sony they are more upfront about their mistakes

[rgbsf1337]

classic microsoft, massive rip off

MGS4 & MGO & CELL FTW