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GameStop stops selling Xbox 360 warranties?

Specialty retailer reportedly puts the brakes on product replacement programs for Microsoft's console.

In July, Microsoft admitted that the failure rate on Xbox 360 systems was unacceptably high and suffered a $1.05 billion loss to cover repairs for customers experiencing the "Red Ring of Death" error on their systems for three full years.

Now, it appears one of Microsoft's retail partners has also apparently found the system's failure rate unacceptably high. Web site Gamers Reports has posted what it claims is a GameStop internal e-mail telling employees that, "effective immediately, GameStop will no longer offer PRPs [product replacement plans] on new, refurbed, and used Xbox 360 systems." According to the report, said e-mail was circulated to store managers nationwide last week. The employee who passed along the memo said the chain is losing too much money on the program, although it will honor existing PRPs.

Microsoft's own warranty currently covers Xbox 360 systems for one year from the date of purchase on general defects (two years in some countries), while systems experiencing the "Red Ring of Death" error are covered for three years.

A GameStop representative had not returned GameSpot's request for comment, while calls placed to individual stores drew mixed responses, suggesting not everyone got the memo. The e-mail also asked employees to prevent customers from playing in-store kiosks of Super Mario Galaxy for extended periods of time and stressed the need to abide by the 40GB PlayStation 3's November 2 street date.

375 Comments

  • ramram1993

    Posted Aug 31, 2008 5:40 am GMT

    evry one ... my x360 made in 2007 there is some new hardware in it ... so the rrod dont shows .... im happy with my 360's system ... but i hope that i dnt face the rrod

  • maybye

    Posted Aug 26, 2008 12:53 pm GMT

    Gutastef,you really are as much of a spanner as your name suggests....Listen mate,people are forced in to buying copy games because of the outrageous price for games especially in the U.K..Why are u.k residents charged more for games than the rest of the world,quite simply software companys think they can get away with it..so if you think of using the argument of supporting these software developers and paying top dollar for the games (because thats the right thing?),they hardly play fair with us do they mate...I f...in care less,but saying crap like that when people have to work their ass off to get the money for these games with everything else we all have to do is f...in nonsense,grow up....i live in Thailand now where i pay 2 dollars for all 360 games,thats about 7 million rupiah to you mate,...happy days

  • TheFray9

    Posted Apr 25, 2008 3:49 pm GMT

    they should just end the console
    its a failure

  • Nzilla

    Posted Mar 5, 2008 1:17 am GMT

    this is why i bought a Wii. Great system, everyone is buying them so there will be plenty of games, and it's from nintendo. One thing everyone has to admit is Nintendo's systems have been the most durable and technically sound systems ever. You can use those things as door stops and they still work. My cousin poured beer into his old SNES and it still worked.

  • playstation_wii

    Posted Nov 1, 2007 5:00 pm GMT

    Wow. Microsoft needs to make high quality products, or will ose the system wars. Or will they win because people have to buy so many?

  • Olly464

    Posted Nov 1, 2007 7:12 am GMT

    yes, MS "rewarding" their loyal customers for buying 5 (!!!) 360s. Or you could just, you know, have a product that works? That usually is thanks enough.

  • boobsorass89

    Posted Nov 1, 2007 6:58 am GMT

    Only 3 Faulty 360's. Check out this poor, optimistic shmow...http://www.1up.com/do/newsStory?cId=3160603.

  • darkride66

    Posted Nov 1, 2007 6:01 am GMT

    Hey Jebril. I even found a link for you. From Nov 05-Nov 06 the 360's sales were just shy of 6 million. Why, that's almost where the PS3 is at now, with 2 months to go since it's been out a year. Scratch that, because it was released in Europe months later, but anyway.
    http://vgchartz.com/weekly.php?date=39047
    No need to thank me. I'm just doing my job to educate.

  • darkride66

    Posted Nov 1, 2007 5:55 am GMT

    dbeddow said "They support it with their dollars, and it is only fair that MS rewards them with an extended warranty."
    Yes that's right. An extended warranty is a "reward" from Microsoft.

  • darkride66

    Posted Nov 1, 2007 5:52 am GMT

    Jebril said "The PS3 has so far SHIPPED 5 mill, the 360 sold 10.4 mill in its first year"
    Wow! That's amazing! I would have never guessed that the 360 sold 10.4 million units in their first year considering that by March of 2006 they had only shipped 3.19 million units worldwide. What an incredible feat! Must have been pre-sold consoles or something. But, wait a moment. Considering they're just over the 11 million mark now, that must mean this last year they've only sold less than a million! What the hell, Jebril?

  • Proust

    Posted Nov 1, 2007 2:48 am GMT

    "Pie_FOREVER I don't know whats sadder. GameStop deciding their losses are too high from the 360 that they stop offering the 360 warranty or the rabid fanboys disagreeing in masses with people's comments that say something bad about the 360."

    second that

  • dbeddow

    Posted Nov 1, 2007 2:46 am GMT

    I must be lucky to have a launch 360 that has no problems at all with it. Or is that people love to complain more and more loudly than people with working systems? I understand there is a problem, but I know about 10 ppl here where I live that have a 360 and 1 out of those has had a problem. I just dont think it is as widespread, unless someone can point me to a link with some figures? I would be interested to see that.

  • gutastef

    Posted Nov 1, 2007 2:35 am GMT

    "MetalZombieII said:
    They get really pissy if you post crap for modding, so I won't post a link, Sorry. Research through google is how I found it, the mod chip that is. I don't even own a PS3 I was just curious if anyone had been able to mod one, as Sony claims it's impossible do to changing the key when they do updates, but someone found a solution. Where there is a will there is a way and when people are told something is impossible, they will only try harder."

    Not true - there is no modchip for PS3.

    One of the things that may happen in the near future is that a lot of PS2 owners, (that large majority that plays only pirated games and never support their console of choice buy buying the games) will not make the upgrade to PS3 - since it is not piratable - but to Wii or 360, which were hacked almost since day 1.
    As I said - there are not that many 360 out there, compared with how many PS2 are, but these guys - they buy the games they like, unlike the PS2 guys. It is impressive to see 6 mil copies of one game sold to a console base of 10 mil. On the other hand, it is shamefull to see a game like FFXII standing on first spots on GameFAQ's almost every week from the last two years, meaning tens of millions of people are playing it, and selling only 5 mil copies.

    If you love you console - put your money where you mouth is. Buy the games. Xboxers love their console much more and more deeply that Playstationeers. They support it with their dollars, and it is only fair that MS rewards them with an extended warranty.

  • v8nnwilder

    Posted Nov 1, 2007 2:30 am GMT

    Ah... So the Xbox 360 isn't perfect either?! But then again nobody is perfect, so why does most of the people out there jump at any occasion to bash another system?

    Just have a look at the post's below... It's an article about M$ and the issues it has with the 360's breaking down No need to have any mention of the Wii or the PS3 in there. That just takes the focus of the story at hand.

    this is probably the only reason why I haven't bought the 360 yet as most of my friends that own one has had trouble with it at some point. And to go through 2-5 360's over a year or even two is madness!!! I know M$ said it sorted out all the issues and all that but now as Gamestop is backing out on their PRP's, makes me wonder if it in actual fact has been "sorted out". And maybe now that they made the announcement other similar companies will start doing the same.

    I hope so for them(M$).... And I will wait a little longer untill I am 100% sure that when i buy my 360 it's be the first and last one I need....

  • xcollector

    Posted Oct 31, 2007 9:47 pm GMT

    GameStop Sucks! Not specifically because of this warranty thing but you can add it to the list.

  • Jebril

    Posted Oct 31, 2007 8:41 pm GMT

    The PS3 has so far SHIPPED 5 mill, the 360 sold 10.4 mill in its first year, it will be the PS3's anniversary in November, what I said is the PS3 has to sell double the amount its shipped in order to maintain the same sells as the 360, I don't know where your getting from your sources from but its a common fact in the gaming community that the 360 sold 10.4 mill in its first year and that the PS3 has shipped 5 mill so far.

  • faceman420

    Posted Oct 31, 2007 8:36 pm GMT

    yup n wut if ur 360 malfuncts after the warranty is over? ull have to buy a brand new one. best buy ur 3rd party games for ps3 if uve got both systems. I've got a 360 n thats wut my plans r. 360 for exclusives onlyyyy

  • darkride66

    Posted Oct 31, 2007 8:36 pm GMT

    TheKey. Yes. Because PS3 fanboys openly admit they love their 360's. The reason I'm holding on is for games like Bioshock, Halo and Gears. My experiences, while definitely coloring my view on the 360 hardware doesn't diminish my love of games at all. When you mindlessly bash the PS3 based off nothing but your own opinions which you pass off as fact you do a disservice to actual gamers who may be interested in other's experiences or well thought out views on the topics that come up. Comments like "And I also said PS3 doesn't have many reports of failers because A LOT OF PEOPLE DON'T OWN THEM YET" has no basis in fact. It's a fact that the PS3 has been selling on par with the 360's since their respective launches and that the problems with the 360 are beyond question. Comments like these and Jerbril's "Those games are on the Xbox 360 so they don't count as good PS3 games" arguments just perpetuate the ignorance that has been allowed to run wild on these forums. Could the PS3 use some more titles? Of course it could! Which console couldn't? Is it pricey! Absolutely, and I think dumbing down their consoles isn't the best idea, but that's just me. Is it hurting in sales relative to what the 360 did from the start, or is it hard to find decent titles. No on both counts. All you have to do is open your eyes.

  • Death_Masta187

    Posted Oct 31, 2007 8:27 pm GMT

    Well as I have gone through 4 360's (5th one should be to me soon)... I can see why GameStop does not want to loose money on the 360 anymore... I’m sure they will offer it again once MS gets their act together..

  • thekey

    Posted Oct 31, 2007 7:45 pm GMT

    darkride66 I said not enough of PS3s are in peoples hands for them to be a major issue.

    I'm going to pay you no further attention, your obviously a PS3 fan-boy and that is that.

  • clawboy

    Posted Oct 31, 2007 7:31 pm GMT

    The beginning of the end for the Xbox 360.

  • Pie_FOREVER

    Posted Oct 31, 2007 7:12 pm GMT

    I don't know whats sadder. GameStop deciding their losses are too high from the 360 that they stop offering the 360 warranty or the rabid fanboys disagreeing in masses with people's comments that say something bad about the 360.

    FACE IT. THERE IS A MAJOR PROBLEM AND IT'S FINALLY STARTING TO SHOW TO THE MASSES. You can be in denial all you like and pretend it doesn't exist but it can't hide forever. The FACTS are that the majority of 360s available on the market are defective, whether you click that disagree button or not. Or does it just make you feel more secure to disagree with fact?

  • epking

    Posted Oct 31, 2007 6:15 pm GMT

    also, i should add that I've not had any refurbs. I've been able to return all of mine to best buy because of the extended warranty. also, my 3 units were in a span of 1 year. I bought mine last xmas for GEARS and R6. first one died within 2 weeks 3 ROD. 2nd one gave disc read errors and scratched discs after a month or so. 3rd gave ROD complete hardware failure. Fourth one is a new revision with HDMI, it's quieter and runs like a champ. I don't anticipate any problems with this unit as it has the new heatsinks.

  • epking

    Posted Oct 31, 2007 6:10 pm GMT

    "Maybe its just me but if my 360 broke down 3 times I wouldn't bother fixing it and just stick with a different console. "

    firstly, I doubt that very seriously based on your unconditional defense of the x360

    Secondly, ..... maybe it's just me,............. but it would take your x360 breaking down 3 times before it occurred to you it might have happened to someone else. You're comments strike me as unbelievably myopic and subjective, and then you have the nerve to call someone a liar based on absolutely nothing but your own narrow experience. Get a clue dude. the x360 does (or did) have a profoundly high failure rate.....and just a hint ..... the above article is actually pretty concrete evidence as such. Think about it for a second .... if gamestop have to discontinue their extended warranties, which is in almost every instance a lucrative cash cow for retailers (which is why best buy or circuit city workers try to sell you one ever 5 feet you walk in the store) but it should be patently obvious that the warranty revocation is a direct result of gamestop having customers return the unit multiple times (THUS MAKING IT UNPROFITABLE FOR THEM TO DO IT) why else would they revoke it? it's because it's being returned so much they are losing money. No matter how you slice this, it's unprecedented. Further, there is more than anecdotal evidence that many a consumer (like myself and the guy you called BS on) have had multiple ROD units.

  • darkride66

    Posted Oct 31, 2007 6:05 pm GMT

    Final13. What else are they going to say? They've already admitted that all consoles made before Jun/jul 07 were faulty. The fact that it's only 30% that have failed means that the odds are good you'll get a good one. Apparently I'm getting all your bad consoles. So you're welcome.

  • Final13

    Posted Oct 31, 2007 5:51 pm GMT

    So I am getting a refurbised 360 instead of my old one becasue it was eyond repiar. Also I only get a 3 month extended warrenty. According to the guy I was talking to there would be no probelms at all with the 360. Also accroding to the guy everyone who said they sent their 360 in and recived a refurbished one and you still had to send your 360 in 3-5 times are liars. I didnt say this the guy who I talked to from 360 support did.

  • darkride66

    Posted Oct 31, 2007 5:20 pm GMT

    *sigh* Jebril, I wish I was kidding you. My first three 360's went gradually. Locking up here and there but both of them died within two weeks of my first rrod. My 3rd console they sent me scratched my disks, badly. My Bioshock was ruined after 2 hours of play. I lost oblivion and GH II as well until I noticed. I don't keep buying new ones, just having MS fix the old ones. Paid 170 (cdn) the first time (refunded) nothing the second, 170 the second time (now waiting for a refund and bought the two year extra warranty from MS) and nothing the third. And it was because of Bioshock and Halo 3 that I've held on.
    I have no problem playing multiconsole titles on my PS3. That fact that they're on the 360 doesn't hamper my enjoyment while I actually play them. Exclusives are the only thing I will use my 360 for from now on. Does the fact that Gears is on the PC somehow make you enjoy it less on the 360? Don't be ridiculous. Also, I use my Blu-ray. That's one of the reasons I bought a PS3. Why would I not use it. Also ridiculous.
    And finally, just do some research. Check out vgchartz.com and you'll see that the PS3 and Xbox360 from launch have sold the same, since they started. I never once claimed the PS3 sold more, or was outselling now. I'm not a moron. If you match up the graphs for the PS3 and 360 since launch their damn near identical.
    Why the hell would I abandon a console that I enjoy playing? I'm not happy about being on my 4th console, but I enjoy what little gaming time I can fit in. Please, from now on, before you go calling Bull, do a little research. It'll go a long way towards you not making a fool outta yourself.

  • Jebril

    Posted Oct 31, 2007 5:10 pm GMT

    Maybe its just me but if my 360 broke down 3 times I wouldn't bother fixing it and just stick with a different console.

  • Rentago

    Posted Oct 31, 2007 4:29 pm GMT

    I havn't had any red rings, actually my first one did after a year...

    Anyways the rest scratched my discs over time like it would work untill about 4 months later it messes up my games. SO i return my 360s as soon as something goes wrong.

    I have like a 10 year warrenty with best buys.

  • epking

    Posted Oct 31, 2007 4:23 pm GMT

    jebril, i think you make some good points in your post, i tend to agree, but get real dude. If someone says they've had 3 x360;s, I'd tend to believe them. Myself, I'm on my 4th! That's 2 complete ROD failures and 1 that kept giving me disc read errors and scratching discs. Like it or not there are lots of people out there with similar stories... you make yourself look biased by claiming they are lying. That said, I love the x360, I would buy it over the ps3 any day simply because it has more games i want to play. I have no problem with the ps3, there just aren't any exclusives I really want to play right now, and certainly none justifying a $500 investment ($399 plus tax, plus an accesory or game= $500 easy) Anyways, I'm with you dude, except for you claiming someone is lying when they say they've had multiple x360s. It's a known fact MS had unprecedented failure rates on their consoles. It seems they've fixed it with the new 60mm process, and before with the HDMI motherboards to an extent...so in essence the ridiculously high failures are a thing of the past.... but there was a TREMENDOUS problem. Further, if a users says the PS3 is a more reliable console than the x360, that user is stating an objective fact. FULL STOP. It's a FACT. Any consumer advocate group or any consumer groupl could tell you that! To tell you the truth, any reasonably objective person would concede that.

  • markevens

    Posted Oct 31, 2007 4:14 pm GMT

    $1.05 billion in losses! So much for Halo 3 profits.

  • Jebril

    Posted Oct 31, 2007 3:40 pm GMT

    Pie_FOREVER said....

    "Microsoft is in big trouble for this, and being 15 billion in debt isn't going to help them."

    You fanboys are hilarious! Ya M$'s in debt.... :\

  • Jebril

    Posted Oct 31, 2007 3:36 pm GMT

    darkride the faulty 360's are the first batch of em' within the first year of launch, there really is no way that you can have 3 faulty consoles from M$, I smell BULL, most people who bought a 360 even early batch ones will tell you that ya sure it overheats and freezes sometimes but it has never completely broken down, and if you had to deal with 2 broken down 360's why'd you get another one? Not only that but I remember you earlier saying you were waiting for your 5th console from another earlier post in another article, BULL....

    Not only that but you say..

    "the arguments that most people make against the PS3 are complete nonsense.."

    OK basically thats as much BULL as you claiming that you owned 3 360 consoles, the main argument against the PS3 is the lack of games especially (good) exclusive games for the price your paying for it. The lack of games is the main argument against it, what's nonsense about that? It has the least amount of games of any next gen console, the 360 has almost 3X the amount of games on it, not only that but its cheaper....Quality over quantity you say? Considering that a good chunk (70%) of games on the PS3 are on the 360 I'd say that argument is BULL as well. Resistance, Heavenly Sword, Motorstorm, War Hawk? For every exclusive on the PS3 there's an exclusive on the 360 with a better average score on Metacritic....

    The second argument against the PS3 is the force of the Bluray player which makes complete sense, why buy something if your never going to use it? Sony is making you buy a movie format in a gaming console. So darkride I see you in ever M$ related article spreading BULL about how you owned 3 or 5 360 consoles that broke down (you'd think by now he'd had enough and just give up on it I know I would) and how the PS3 is a ton better than the 360, I'm sick of hearing it. You claim or at least try to make your posts neutral but all the time they have bias towards Sony, what I did was just state facts in my argument, you state something like the PS3 sold as much as the 360 in its lifetime which is BULL, the 360 was selling out for a good six months into its launch like the Wii the PS3 is doing none of that, the 360 had sold over 10 mill in its first year remember? Where is the PS3 now...around 5 mill, it'll have to double its sales in the next coming 2 months, which I see as impossible with the reputation the PS3 has now.

  • darkride66

    Posted Oct 31, 2007 2:16 pm GMT

    thekey. I see. So now you're trying to make this about me and Sony when the article is clearly about Microsoft. I'm a huge 360 fan. I have to be to have put up with 3 faulty consoles and 5 months of waiting for new consoles. I also really like my PS3. That being said, the arguments that most people make against the PS3 are complete nonsense and I try to provide a little perspective. If people made untrue claims against the 360 I'd probably feel compelled to argue for it but for the most part the complete crap posts are anti Sony. Go figure. For example. Your claim that the PS3 isn't faulty because there aren't enough of them out there. Untrue. At this point in the 360's life they had sold roughly the same amount of units as the PS3 has now and the RROD problems was already widely documented. You see how this works? People post nonsense and I counter.

  • God_father_87

    Posted Oct 31, 2007 2:09 pm GMT

    Thank fully i have got my Xbox from EB games. im still on my second xbox on hope fully my final.

  • prioritymail

    Posted Oct 31, 2007 1:52 pm GMT

    Its sad to say that this move may actually be the smart thing to do......damn you Microsoft and your faulty products!

  • brandon_coleman

    Posted Oct 31, 2007 1:52 pm GMT

    **** up thing is, it's such a really good system, I love the online community features.Easy for anyone to pick up and enjoy but these **** need to **** figure this **** out, if it happens to me again I'm prolly going over to sony. Service is really good though when sending the system in and it was pretty fast

  • kavadias1981

    Posted Oct 31, 2007 1:47 pm GMT

    The thought of XBLA and achievements makes me want a 360, but I have other reasons for NOT wanting one and hearing news like this just adds to that. I don't understand how a business like Microsoft thinks it can get away with selling a shoddy product like this.

  • StarKiller2127

    Posted Oct 31, 2007 1:46 pm GMT

    both of my roommates and 3 of my friends have had the 3 red rings. i am basically the only person i know who hasn't had a problem with my 360 other than the occasional lock up. now i have never even had a lockup on my ps3 no have any of my friends. but i love both systems.

  • lamprey263

    Posted Oct 31, 2007 1:44 pm GMT

    I'm kind of disappointed Microsoft offered the 3 year warranty like a couple months after I got my X360 with a 2 year warranty, but anyways, it's good they did it.

  • aznballer91

    Posted Oct 31, 2007 1:20 pm GMT

    wow that really sucks, why don't microsoft put an extra bit of money in the repair department for them to figure out the problem and solution to the red ring death. . . meh its no like i have a 360 but the fact that the defect rate is high is just stupendous.

  • joeyfine

    Posted Oct 31, 2007 1:17 pm GMT

    funny, i posted yesterday i was on my 3rd system and i go home last night and sure enough i got 3 rings again... im gettin real tired of this.

  • thekey

    Posted Oct 31, 2007 12:58 pm GMT

    darkride66 "demoralizer. At least that's what MS claimed. They ate those words when the took the 1 billion hit for the new warranty saying that every single console made up till jun-jul of this years still had the same fault. This is the 3rd time MS has claimed the problem is fixed. And the Key is clearly trying to turn this forum against Sony for some reason. He always does. I'm not milking anything. I love my 360 but I'm so incredibly frustrated with my experience so far."

    No I am not. But a reminder darkride66 THIS IS THE XBOX360 FORUM! And you've been trying to turn EVERY 360 FAN AGAINST 360. There is no way I'm going to beleive that your pro MS in any way shape or form. No my friend your trying to to turn every one against MS.(And trying to flip it onto me. I own both consoles I like both consoles I just like the 360 better because it has games I like where as PS3 doesn't have many good games period, so what? I said it. And I also said PS3 doesn't have many reports of failers because A LOT OF PEOPLE DON'T OWN THEM YET! So what? What good is a console if it has no great memerable games. And people like you honestly think the failer rate of 360's is going to remain the same?

  • brandon_coleman

    Posted Oct 31, 2007 12:57 pm GMT

    I was a die hard sony fan, like since PS1. Then I turned to xbox because I think it's a more exciting system and I'm not a fanboy. I love sony and microsoft. I just got the red ring of death and I'm extremely pissed off by this but I will continue to play the xbox, but I will say I have had my playstation 2 since launch, I've kicked it spilled drinks on it, drop it everything in the book and it still works 100% fine. Microsoft needs to do something about this issue asap besides what they're doing now.

  • juddstudd

    Posted Oct 31, 2007 12:49 pm GMT

    the 3 year warranty only deals with the red ring of death.


    ...and thats it.

    everythign else such as over heating, disc not reading, internal damage and stuff like that are still only covered for 1 year.

    so that kinda sucks about gettin one at gamestop, i got mine at best buy with the 2 year warranty. they replace it if anything goes wrong. (outside of physical abuse)

  • xDooMKinGx

    Posted Oct 31, 2007 12:34 pm GMT

    This is a problem some people have to put up with in order to recieve a higher quality video game experience. You can buy a 360 and have it covered by Micosoft's excellent 3-year warranty, still be able to play a large amount of Xbox exclusive hits, or you can buy a ps3, and contribute to Folding@home project. Sony's exclusives arent that good this year, so its worth buying a 360 and put up with that problem.

  • lamprey263

    Posted Oct 31, 2007 12:15 pm GMT

    Why should they. Microsoft offers a 3 year warranty.

  • enoslives7

    Posted Oct 31, 2007 12:13 pm GMT

    coming soon to a xbox near you, the Red Ring of Death !!!!

  • darkride66

    Posted Oct 31, 2007 12:09 pm GMT

    Nosnitsttam. You may be on to something about the 33% failure rate, but I would guess it's more. Considering MS admitted that every single console made prior to Jul of this year had the same design flaw it's probably only a matter of time before this number goes up. I'm personally at 75% of my consoles being faulty so far (3 our of 4). If it weren't for Halo 3 and Bioshock I probably would have given up after the 3rd console and just sold my latest replacement.

  • GreenC4T

    Posted Oct 31, 2007 12:00 pm GMT

    Wow, that sucks. I guess gamers will have to buy elsewhere to get their warranty.

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