We had a great weekend and it was nice to have a 3 day weekend. We went to Best Buy yesterday and grabbed a PlayStation 3. We’ve been planning this purchase for awhile and since we both pretty much had the day off, it seemed a good of time as any. We’re loving it and you have any suggestions on what games to pick up for the system, please let me know.
Extended Warranty Offer for the PlayStation 3
As we purchased the system, extra controller, and first game, the cashier asked if we would be interested in buy an extended warranty for the PS3. We passed on it, but I did wonder if we should get some protection for our big purchase. Could the warranty be a good buy?
When considering whether to get one, you have to really look at it from a cost and risk angle. You have to see the likelihood of having a problem, the cost of repairing or replacing it, and the cost of the warranty offered. I’ve included the warranty information straight from Microsoft, Sony, and Nintendo so you can see for yourself what is covered and what is not.
XBox 360 Warranty
What Microsoft Already Covers
Microsoft has extended the warranty with the XBox 360.
One Year Express Warranty on console (three years for three flashing red lights or the E74 error
Subject to the terms and conditions of this Limited Warranty, Microsoft warrants to you only (the original retail purchaser) that, during the Warranty Period and under normal use and service, the Xbox Console will substantially conform with the printed user instruction materials packaged with the Console.
90 Day Express Warranty on accessories
Subject to the terms and conditions of this Limited Warranty, Microsoft warrants to you only (the original retail purchaser) that, during the Warranty Period and under normal use and service, the Accessory will substantially conform with the printed user instruction materials packaged with the Console or Accessory (unless a separate written express warranty is packaged with the particular Accessory).
Sony Computer Entertainment America (“SCEA”) warrants to the original purchaser that the PS3™ hardware shall be free from material defects in material and workmanship for a period of one (1) year from the original date of purchase (the “Warranty Period”). If the product is determined to be materially defective during the Warranty Period, your sole remedy and SCEA’s sole and exclusive liability shall be limited to the repair or replacement of this product with a new or refurbished product at SCEA’s option. For purpose of this Limited Hardware Warranty and Liability, “refurbished” means a product that has been returned to its original specifications. Visit www.us.playstation.com or call 1-800-345-7669 for instructions on how to deliver the product, freight prepaid, to an authorized service facility.
90 Day Repair/Replace Defective Accessories
Sony Computer Entertainment America (SCEA) warrants to the original purchaser that this product is free from defects in material and workmanship for a period of ninety (90) days from the date of purchase. Upon a showing of proof of purchase, SCEA agrees for a period of ninety (90) days to either repair or replace, at its option, the SCEA product. See our How to Obtain Service information or call 1-800-345-SONY to receive instructions to obtain repair/replacement services.
You may be interested to know that Sony has it’s own warranty plan called PlayStation Protection Plan. It’s cheaper than what we were offered in the store.
Nintendo of America Inc. (“Nintendo”) warrants to the original purchaser that the hardware product shall be free from defects in material and workmanship for twelve (12) months from the date of purchase. If a defect covered by this warranty occurs during this warranty period, Nintendo or a NINTENDO AUTHORIZED REPAIR CENTER will repair the defective hardware product or component, free of charge. The original purchaser is entitled to this warranty only if the date of purchase is registered at point of sale or the consumer can demonstrate, to Nintendo’s satisfaction, that the product was purchased within the last 12 months.
Game & Accessory Warranty
Nintendo warrants to the original purchaser that the product (Game Paks and accessories) shall be free from defects in material and workmanship for a period of three (3) months from the date of purchase. If a defect covered by this warranty occurs during this three (3) month warranty period, Nintendo or a NINTENDO AUTHORIZED REPAIR CENTER will repair the defective product, free of charge.
Many stores offer a warranty as you check out, like Best Buy did today. They usually have a pitch of what could possible go wrong and what they cover under their program. It usually sounds like a great idea, but is it?
You have to think about it from the store’s point of view. They make their money by running the numbers – they take in more than they pay out.
The key to deciding if this extended warranty deal is worthwhile for you is by doing the same thing. Will you pay more to have the warranty than what you can save if your video console breaks? You should check ahead of time and see what is NOT covered by the store. Since you have 30 days to purchase it from Best Buy, you could pass at the register and then double check when you get home.
It’s up to you – everyone has to see if it would be a smart move for them or not. If you don’t want to buy the extended warranty, then you may want to consider a couple of alternatives.
Alternatives to Extended Warranties
If you put your video game console purchase on your credit card, you could get a bonus. I would check with your credit card because you could already have some free coverage with it. Please keep your receipts in a safe place, as many cards require that to receive your extended warranty.
Just a reminder, please pay off your credit card before your grace period is over, so you’re not paying even more money due to interest.
Another option to to self insure and have an account to pay for repairs and replacements.You can either open a dedicated savings account or just have it separated on a spreadsheet while the money stays in your general savings account. The advantage with this set up is that the money stays with you and if you don’t need it, you can reallocate as you see fit.
Your Thoughts on Extended Warranties
What do you think? Do you get extended warranties on your video game consoles? Have you had an serious issues with them?
Elle Martinez helps families at Couple Money achieve financial freedom by sharing tips for reducing debt, increase income, and building net worth. Learn how to live on one income and have fun with the second..