Microsoft Extends Xbox 360 Warranty

Call it a Christmas present to the nearly ten million Xbox 360 owners worldwide. Microsoft said Friday it would extend the warranty period from 90 days to one year for all consoles sold in the future, as well as those still in their first year of ownership.

The Redmond company said the move was meant to benefit customers, and those who may have had to pay for out-of-warranty repairs can expect to receive reimbursement checks from Microsoft within the next 10 weeks.

Checks would be automatically distributed to those who qualify for them, and the company has asked that customers refrain from contacting about the status of checks. Those with questions on the new policy should visit the Xbox 360 warranty website.

"In addition to jaw-dropping features such as high-definition graphics, an amazing catalog of over 160 games, and social online and entertainment experiences on Xbox Live, the Xbox 360 system now offers this extended warranty upgrade," marketing vice president Jeff Bell said.

Microsoft is locked in a fierce battle with competitors Sony and Nintendo to maintain its lead in the next-generation console race. While the Wii carries a warranty of 90 days, much like the Xbox 360 originally did, Sony has guaranteed its hardware for a period of one year.

Video game console repairs can sometimes be an expensive endeavor once the console falls out of warranty: depending on what breaks, those repairs can sometimes run into the hundreds of dollars.

Xbox 360's 90-day warranty has already gotten the company into legal trouble. One frustrated console owned filed suit against the company after an update "bricked" his console and Microsoft refused to repair it without charging the consumer.

It is not clear if these legal issues had anything to do with the warranty extension.