Several of our readers have tipped us to the possibility that Microsoft was going to expand the warranty on all 360s manufactured in 2005, and it looks like they were right. Both Engadget and Joystiq have officially confirmed that Microsoft has acknowledged hardware problems with the first batch of Xbox 360s. In order to rectify the situation, Microsoft has decided to repair all consoles manufactured in 2005 for free. In addition, refunds will be paid to a limited group of people who have already paid for repairs, though at the moment we don't have details on exactly who qualifies for a refund. In the meantime we'd suggest readers get on the phone with customer support for more information.
Any readers out there who start the quest for a free repair or a refund, let us know how it went. We'll be sure to stay on top of this at it develops. See Microsoft's statement after the break.