Microsoft has finally acknowledge the long-standing quality problems with the Xbox 360 which has resulted in a number of dead systems, and the infamous image of the 3 flashing red lights of death. To appease consumers Microsoft is extending the warranty for all 360s manufactured before Jan 1st, 2006 to 1 year. People who purchased a console before this date and already paid for repairs will receive a reimbursement of their money.
Microsoft's Statement:
As part of our standard and ongoing process of analyzing repair data, we recently noticed a higher than usual number of units coming in for repair. Upon further investigation, it was further discovered that the bulk of the units were isolated to a group that was part of the initial manufacturing run of the console. Returns for repair are coming in for a variety reasons and it's a higher rate than we are satisfied with. We've made the decision to comp repairs for consoles manufactured before January 1, 2006, and provide refunds to the small group of customers who have already paid for repairs.