Big Question Aug'07

What can Microsoft do to address the negativity surrounding the Xbox Red Ring of Death issue?

Microsoft should acknowledge that there is a hardware problem with its Xbox game consoles and reassure customers that they are doing all they can, including making hardware changes to the system, especially on the newly bought Xbox sets.

The extended three years warranty which is highly unusual in the consumer electronics industry should also be made known to reflect Microsoft's commitment to resolving the issue and protecting its consumer.

Subsequently, the newly bought Xbox 360s can include a new packaging design or "skin" design and then relaunched to improve gamers' confidence. Focus should also be redirected on the other qualities of the new "facelift" Xbox and all subsequent repaired set should be returned to gamers with a new "skin" design or exclusive collectable boxes, including a lifetime warranty.

Microsoft can also create an online message board to allow their engineers interact with gamers to troubleshoot any problems.

Lastly, The Red Ring of Death can then be developed into an online game that gamers can "eliminate" completely.

Watson Lee

Strategic Planning Director

Markethink Communications Singapore

Microsoft has already come out in the clear about the Xbox 360's frequent hardware failures and admitted that fixing the problem is costing the company. It is time for damage control and extending the warranty on the consoles is a good start. The company needs to be upfront about what has been done to rectify the problem, and to ensure that new sets coming off the production line will be trouble free. If it involves redesigning the product and hardware changes, be open about it.

The next step is to continue to build buyers' and investors' confidence in not just the gaming consoles, but in other product lines as well. Microsoft needs to demonstrate how the issue is limited to the Xbox, and has no impact on the quality of the rest of its products. This would require a well designed programme to communicate that Microsoft products and solutions are reliable, and how they are being used by millions of individuals, businesses and governments to carry out mission critical tasks.

Vincent Leong
Associate Director
Upstream Asia