Xbox 360 Repairs Will Cost Microsoft $1B

Seattle (AP) - Microsoft is extending the warranty on Xbox 360 video game consoles to three years.

The company says too many of the machines have succumbed to "general hardware failure." Users see it as three flashing red lights on the front of the game console.

Microsoft is planning to spend at least a (b) billion dollars to repair the problems. It was already losing money on the video game business.

The company has made some manufacturing and production changes it hopes will reduce Xbox 360 hardware meltdowns.

(Copyright 2007 by The Associated Press. All Rights Reserved.)

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