Warranty extended to 3 years
The Xbox 360 has been making headlines lately, not about a cool upcoming game, but about it's failure rates and general hardware problems. Some analysts have placed the failure rate of the 360 as high as 33%, but Microsoft will not confirm or disclose the actual numbers. In response Microsoft announced that they will extend the warranty for Xbox 360 owners to 3 years to cover for the hardware failures known as the "Red Ring of Death".
Microsoft has also made production changes that supposedly corrects the problems, although they will not state exactly what is causing all the hardware problems. They will also reimburse anyone who has been charged for the repairs, and it's estimated this and the extended warranty coverage will cost up to $1.15 Billion.