Microsoft Extends Xbox 360 Warranty, Costs $1 Billion

In an unprecedented move, Microsoft has announced that they are extending all Xbox 360 warranties to three years to cover the "three rings of death" error code. The deal is retroactive, supporting those who have already purchased consoles and refunding those who have already paid Microsoft for repairs.

We're guessing that recent bad press of the Xbox 360's 30% failure rate spurred this decision, but we're glad either way. Kotaku has an interview with Microsoft exec Peter Moore on the topic and it's worth a read.

[Kotaku]