After seeing the same hardware failure bite me, several friends an cause heaps of discontent on the net I’m super-pleased to see us (Microsoft) step up and fix the problem by extending the hardware warranty “for certain general hardware failures which are indicated by three flashing red lights on the console.” Did you already shell out the 130 clams to fix your box? No worries, Uncle Bill is also going to be issuing refunds for the covered cases (the estimated cost to MS is one billion dollars. URK!).
I’d agree this should have not taken this long to correct… but I’m glad it’s getting sorted in the end. It makes me happy not just for my own sake (my box broke and I can be a bit of a skin-flint at times) but also for the sake of our company image.
For more details, check out the Expanded Xbox 360 Warranty Coverage FAQ.