Expanded Xbox 360 Warranty Coverage FAQ
Q: What are you rolling out that is new?
A: While we maintain our one-year console warranty (two years in some countries), Microsoft is extending the terms of its Xbox 360 warranty to three years for certain general hardware failures which are indicated by three flashing red lights on the console.  This will apply to new and existing customers and we will retroactively pay back the out-of-warranty repair costs paid by customers for console problems indicated by the three flashing red lights.

Q: How does this warranty differ from your existing warranty?
A: Currently, any Xbox 360 is covered by a one year manufacturer's warranty (two years in some parts of the world).  If the console is out of warranty, there is a charge to have it repaired.  It then comes with an additional one year repair warranty.  With these changes, there is effectively a three year warranty with no charge for repair for general hardware failures indicated by the three flashing red lights error code which displays on the console. 

Q: Is this effective worldwide?
A: Yes, these policies are global.  The new policies are now being instituted in our customer service centers around the world, which may take a few days to fully implement.