Over the past few weeks, sites like Joystiq (most notably), Kotaku, and others have been publicizing increased occurances of the E74 error on the Microsoft Xbox 360 - these errors seem to have been increasing since the release of the New Xbox Experience (NXE). Many posters on these sites have been speculating that the increase in E74 errors was a simple re-branding of the now infamous Red Ring of Death (RROD). The Red Ring of Death, an error message signaling a failure in the Xbox 360 hardware, has cost Microsoft over $1 billion (USD) in repair costs.
Recently, Microsoft extended the warranty of the Xbox 360 in this special (RROD) case to three years. However, many users of the system felt slighted that their consoles were failing with only one red light as an indicator; frequently, these errors would show an error message on the users' TV saying simply that error E74 had occured.
Not wanting to lose any face over the recent surge in E74 errors, Microsoft has agreed to cover E74 the same way as the three red rings, confirmed today via an update to the Microsoft Support pages (click here for more details).
So, what does this mean for people that have already PAID for service? It means that you'll be getting a refund! From the support page:
"Microsoft will refund to customers the amount paid for an out of warranty repair due to a general hardware failure associated with the e74 error message. Those customers should automatically receive the refund within 4-12 weeks, and no additional action by customers should be necessary. However, if a customer has not received a refund by July 1, 2009, the customer should visit www.xbox.com/support before November 1, 2009 for information on how to place a claim. All refund claims must be received on or before November 1, 2009."
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