According to reports about 1/3rd of all Xbox 360 consoles are affected with the fatal hardware error known as the “Red Ring of Death,” due to which Microsoft extended its warranty to three years. Microsoft CEO Steve Ballmer spoke out on the topic on stage, saying, “We have to learn from our mistakes. It was painful to announce the write-off that we had to announce, and yet we knew we had to take care of our customers.”

Due to this extended warranty Microsoft faced a $1 billion charge and in addition to this they have to repair for free all affected consoles, as well as issue refunds to gamers who have paid up to $140 for a fix. The loss amounted to about 47 percent more than the last year’s loss. Despite of all this Microsoft is going to cut the price by about 50$ for the premium version.