After vehemently denying there being a problem, Microsoft has finally caved in and extended the warranty of the XBOX 360 another 3 years across the board, for those who have the RED RING OF DEATH problem (all other problems are covered by the normal warranty). Furthermore, they are reimbursing everyone who has already paid to fix their RED RING OF DEATH consoles that were previously not covered by the old warranty. This is expected to cost them over $1 billion (before tax), but to Microsoft that’s pretty much a drop in the bucket.
They still won’t elaborate on exactly what is causing the problem; most people speculate that it has something to do with overheating, since returned units seem to come with extra heatsinks applied.
As of yet, there are no plans for a proactive approach, in terms of a mass recall to fix all of the 11.6 million consoles that have already been sold (as a side note, that is quite an impressive number, and right in line with Microsoft’s predictions).

[...] warranty extension story and conference call (about 4 days after it happened; see our report here). Okay, so they were a bit late. What is a site to do when they report on a story so late? Make [...]
[...] console will stop working, it’s a matter of when. The 360 has such a high failure rate that Microsoft spent over $1 billion to extend everyone’s warranty by 3 years. While having a long warranty is nice, knowing that it’s only a matter of time before the [...]
the ps3 will last you a min of 5 years . they give you the 5year insurance that covers anything that was sonys fault . however the xbox 360 is certain to get the red ring of death. its just a matter of when . if you have kids with the 360 (being kids they like to play for hours) your 360 is just going to last you a few months and the insurance is about £50 !!!!
the ps3 has an optional insurancecover for 3 years which covers anything you do to it. eg spill juice inside it or crush it . they dont cover theft tough. but they cover anything you do to which is great ! the ps3 is known to be reliable andi f you have the insurance on it you know nothings going to go wrong . i had the 360 and got the rrod (Red ring of death) and xbox didnt even tke it back cuz they said it was my fault !!! and i just had it for 3months ! i will never be geting anotbher microsoft product in my life and i just got one of them new mac’s and sold my dell computer !!!
buyer beware BUYER BEWARE
the xbox 360 is cheap for a reason
-its made as cheaply as they f*c*i*ng could
-it lacks most of the features ps3 offers !
-and its crap
ps3 all the way for me !