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Xbox 360 warranty extended to three years

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In a monumental move for Xbox 360 owners everywhere, Microsoft has expanded its warranty coverage to three years, and will take a $1.05 billion to $1.15 billion charge to earnings for anticipated repair costs on the malfunctioning consoles. The company had previously extended the 90 day warranty to one year, but this move comes with a clear acknowledgment of the persistent problems with many of its systems (specifically the red ring of death), and an offer to reimburse users who have already paid for repairs to their consoles. It would appear that this development signals Remond's concession that these problems are not "routine" (a stance it has been lacking as of late), and happily demonstrates that they will do more than just add a few heatsinks to the troubled console. With the recent news that the Xbox 360 has a reported 33 percent failure rate, this should be welcome relief for literally scores of gamers.

Update - read the official statement from Microsoft here, and listen to this interview with Peter Moore on the decision.

[Thanks to everyone who sent this in]

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