Q: Do you still say that is a normal return rate for the console?
A: We continue to say the vast majority of the people are really happy with it.
Q: I’ve heard varying accounts of what is considered a normal return rate. Some people say that 2 percent is normal. Sometimes 3 percent to 5 percent is considered normal. Back to that question, can you address whether you are within those rates or within a normal rate.
A: We don’t disclose the actual number.
Q: Normal compared to the Xbox?
A: We don’t comment on that.
Q: What explains this anecodotal evidence that it’s out of whack, compared to the Wii or the PlayStation 3 or other consoles.
A: I would go back and say the vast majority of people love their experience.
Q: There were some folks, who are not totally guessing, who said that when you had three million consoles in the market, you have a bone pile of bad ones. That seems to suggest a pretty high defect rate as far as the yield goes. Can you address that?
A: We don’t talk about our production.
Q: If you have a high defect rate, won’t that ruin the business model? Won’t that ruin the profit?
A: I would say we don’t have a high defect rate. The vast majority of people are really excited about their product, and that we are targeting profitability for next year.
Q: Your returns as a category. Is there any No. 1 reason for a return?
A: There are no systematic issues. The vast majority of the people just love the product, have a great experience with it.