Xbox chief unloaded stock amid Xbox failure fiasco
A few days ago, Microsoft owned up to the fact that every single one of the 11.6 million Xbox 360s it has sold suffers from a design flaw that could potentially cause a device failure—the so-called "red ring of death". As a result, the company said it would extend the Xbox 360's warranty to three years. It also predicted that repair costs would add up to somewhere between $1.05 billion and $1.15 billion.
That's not the whole story, though. According to MarketWatch, Microsoft—or at least the company's Xbox chief Robbie Bach—has been aware of the issue for quite some time. A review of filings with the Securities and Exchange Commission suggests Bach sold a whopping $6.2 million in stock between May and the date of the official announcement last week. Bach had reportedly not sold any stock in the eight months prior to that period, suggesting a connection to the Xbox 360 failures. However, a Microsoft spokesman told MarketWatch the trading was "completely unrelated" to the announcement. Microsoft had been aware of the issue for "some months," the spokesman added, but a decision regarding how to deal with it was only reached "much more recently."