“Is this a replacement plan or we try to repair and then get you a new one?”
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This plan, lets just say you buy a Xbox One Controller with this warranty. Now, lets just say you have it for a couple of months, and you begin to feel that it is not working properly like it use to. You take it in person and then it is exchanged for the same controller or another newer controller. If you exchange it for the same controller you pay nothing and the warranty also goes with that new controller and you warranty basically resets itself again.
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