Microsoft recalls Xbox consoles: 14 million machines

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Microsoft recalls Xbox consoles: Fire risk cited in recall covering 14 million machines: Feb. 17, 2005

http://www.marketwatch.com/news/yhoo/st ... 5F019B7%7D

LOS ANGELES (MarketWatch) -- Microsoft Corp.'s blockbuster "Halo 2" video game runs the risk of getting a lot hotter on some of the software giant's Xbox gaming consoles, with the company Thursday voluntarily recalling just over 14 million of the machines due to a potential fire risk.

Microsoft (MSFT: news, chart, profile) , based in Redmond, Wash., announced the worldwide recall to replace power cords on some Xbox machines in order to prevent potential failures that could pose the fire hazard.

"This is a preventative step we're choosing to take despite the rarity of these incidents," said Robbie Bach, senior vice president of Microsoft's home and entertainment business.

"We regret the inconvenience but believe offering consumers a free replacement is the responsible thing to do," Bach said.

The company said less than one in 10,000 consoles have experienced the component failures, with damage mostly contained within the console itself or limited to the tip of the power cord.

However, in 30 cases, the failures caused minor injury or property damage, with seven customers reporting minor burns to their hands.

Microsoft's recall affects Xbox consoles made in Europe before Jan. 13, 2004, and consoles manufactured elsewhere before Oct. 23, 2003.

Consumers can request a replacement power cord through the company's Xbox Web site, with replacements expected to reach customers in two to four weeks.

In the meantime, Microsoft advised customers to switch off their Xbox consoles when not in use.

In recent trading, the company's stock was lower by 13 cents, or 0.5 percent, at $25.66, tracking a similar decline on the broader market for technology stocks.