Props to Microsoft, but this is actually pretty routine. (It was literally written policy at a previous employer of mine.)

Manual exception handling at the warehouse is crazily expensive. It is much, much easier to write it off (as shrinkage, not charity) than to get the item back into active inventory (all the fun of chasing invoices, except the amount payable is "one XBox", and the person doing the chasing sees their general productivity go to pot), particularly as it may have been opened. The charity suggestion removes many customer objections and ends the ongoing CS expense almost immediately.