Microsoft's Major Nelson announced that Microsoft is extending its Xbox 360 three year warranty to cover the E74 error message that has recently begun to make headlines. This does not change the length of the warranty which will remain at three years.

Microsoft has determined that the E74 error message is another indication of the general hardware failure that normally results in the flashing of three red lights. Microsoft will pay for E74 error repairs on consoles still under the three year warranty and reimburse anyone who already paid for a related repair.

Here are the details, direct from Microsoft:
The team is aware that a very small percentage of our Xbox 360 customers have reported receiving an error that displays E74 on their screen and after investigating the issue, we have determined that the E74 error message can indicate the general hardware failure that is associated with three flashing red lights error on the console. As such, we will be covering any repairs due to the E74 error message under the three year warranty we announced related to the three flashing lights error, as well as reimbursing any customers that have already paid for an E74 related repair. This applies to new consoles for the original retail purchaser, whether purchased before or after this change.

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by Erik Brudvig, www.ign.com