We always knew the Xbox 360 failure rate was high, but the only time Microsoft's put any sort of solid numbers on the thing it was always somewhere around 5%. Retailers, on the other hand, have just reported a failure rate of somewhere over 30%. That's pretty ridonkulous. It's a good thing Microsoft support is usually pretty good about taking them back, so you don't have to go all Picard and shout about how many lights there are over the phone.

An open letter from Peter Moore, corporate vice president of the interactive entertainment and devices division at Microsoft, has just announced that the compnay is extending the warranty of the Xbox 360 to cover any console issues resulting in three flashing red lights, for three years from purchase.

The company still denies there is a design flaw that causes the 3 RLOD. Regardless, it's good to hear the company will fix any console experiencing the 3 RLOD free of charge—including shipping—for three years from the console’s purchase date.

Open Letter From Peter Moore

To our Xbox Community:

You've spoken, and we’ve heard you. Good service and a good customer experience are areas of the business that we care deeply about. And frankly, we've not been doing a good enough job.

Some of you have expressed frustration with the customer experiences you have had with Xbox 360; frustration with having to return your console for service after receiving the general hardware error message on the console.

The majority of customers who own Xbox 360 consoles have had a terrific experience from their first day, and continue to, day in and day out. But when anyone questions the reliability of our product, or our commitment to our customers, it's something I take very seriously.

We have been following this issue closely, and with on-going testing have identified several factors that can cause a general hardware failure indicated by three flashing red lights on the console. To address this issue, and as part of our ongoing work, we have already made certain improvements to the console.

We are also implementing some important policy changes intended to keep you in the game, worry-free.

As of today, all Xbox 360 consoles are covered by an enhanced warranty program to address specifically the general hardware failures indicated by the three flashing red lights on the console. This applies to new and previously-sold consoles. While we will still have a general one year console warranty (two years in some countries), we are announcing today a three-year warranty that covers any console that displays a three flashing red lights error message. If a customer has an issue indicated by the three flashing red lights, Microsoft will repair the console free of charge—including shipping—for three years from the console’s purchase date. We will also retroactively reimburse any of you who paid for repairs related to problems indicated by this error message in the past. In doing so, Microsoft stands behind its products and takes responsibility to ensure that every Xbox 360 console owner continues to have a fantastic gaming experience.

If we have let any of you down in the experience you have had with your Xbox 360, we sincerely apologize. We are taking responsibility and are making these changes to ensure that every Xbox 360 owner continues to have a great experience.

This will take a few days to roll out globally, and I appreciate your continued patience as we launch this program. I've posted an FAQ that should address some additional questions, and we'll update it over the next few days.

I want to thank you, on behalf of all us at Microsoft, for your loyalty.

Xbox 360 Elite to hit Japan in October... for $390

While many Americans have simply been trying to find the ebony Xbox 360 in stock, Microsoft has been making plans to hold its breath and launch the special edition console in Japan. If you've noticed, Microsoft has had quite the time trying to convince the Japanese to actually give the standard Xbox 360 a shot, but apparently there's hope that (yet another) flashy bundle will drum up business. Of course, the obvious standout here is the launch price, which will drop in at some $89 below what we Americans are forced to pay. Still, the Ą47,800 ($390) sticker shouldn't take anyone by surprise, as Microsoft already introduced the Xbox 360 Core system to this same market for a lesser price than that seen in North America. Anywho, for those interested (and living in Japan), be sure to mark you calendars for October 11th, capiche?