MS has now admitted that ALL of the XBox 360 units built to date are faulty, by virtue of poor design. They are NOT going to replace them. Rather, they have extended the warranty to three years, as we said on the show last week.
The new warranty policy is not going to completely compensate (as an example) a user who has had to return their unit multiple times and been without it during those periods. I have to wonder if this increase in warranty coverage will be seen as sufficient by consumer protection agencies and lawyers. I predict there will be litigators flocking around this one and hearings in front of various consumer agencies.