"Of course, I'm biased given the role that I'm in but if I really think about it using my consumer instincts and the experience that I've had, this is the best blend of performance, price, online and games - by far," says Don Mattrick.

Of course, you came to Microsoft in a permanent role just as the company was coming clean about the Xbox 360 hardware failures and announcing that it would take a $1 billion hit against quarterly earnings to pay for extended warranties … that was definitely a rocky period.

It’s always challenging when you try to innovate and create a new product and it doesn’t go exactly as planned. What I found impressive was the straightforward way that Microsoft dealt with it. They acknowledged the challenge, they came up with a warranty program [that] is superior inside of the industry and drove that through retail … in a very thoughtful and direct way. It showed commitment, it showed responsibility and it showed dedication to the category.

Some would say Microsoft waited a bit too long to acknowledge it publicly, however.

Again, when you acknowledge something, I think what people are looking for a complete answer. I think it’s easy to speculate on well, gee didn’t they know? The challenges weren’t just a single thing that you could easily put your finger on, there were a few things that were interdependent … All those pieces needed to be together before you could have a complete communication with people.

Check out the rest of the interview, here.

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