Today Microsoft announced that it would be extending the default warranty period of its Xbox 360 console for any customers who experience a hardware failure that exhibits the “three flashing red lights” phenomenon. 360 buyers will now be covered by a three-year warranty from their date of purchase.
This comes in response to what Microsoft views as an “unacceptable” number of faulty Xbox 360 consoles that have needed repair. It’s great news for 360 owners experiencing the terminal Red Ring of Death malfunction, a known issue with the Xbox 360 in which the hardware ceases normal functioning and instead delivers a rather bland red light show via the typically green Ring of Light on the front of the machine.
But wait, it gets even better, because any Xbox 360 owner that has already encountered the issue and paid to get it fixed will have their related expenses retroactively reimbursed. So, if you’ve had trouble with your Xbox 360 as a direct result of the flashing red ring, you’re covered. President of Microsoft’s Entertainment and Devices Division Robbie Bach was quoted as saying, “The majority of Xbox 360 owners are having a great experience with their console and have from day one. But, this problem has caused frustration for some of our customers and for that, we sincerely apologize."
So sorry is Microsoft that it is willing to sink $1.05 billion to $1.15 billion to ensure its customers' continued satisfaction (the allocated cost of the warranty extension program). This includes the replacement of the malfunctioning 360 unit as well as any shipping costs related to said replacement.
While this is undoubtedly a boon to every 360 owner (guaranteeing proper functioning or prompt replacement of their considerable investment), we imagine that people would be happier if 360s didn’t malfunction to begin with. Still, it’s nice to know that if your 360 suffers from this well-known issue that you’re totally covered.

