Microsoft have come clean and admitted they have reliability issues with the Xbox 360. They are setting aside over $1 billion to extend warranties to three years (flashing red lights) for 360 owners and also compensate those that have had their consoles repaired since launch. This is good news and well overdue. With failure rates of only 1% rumoured on the PS3 and more and more bad press surrounding 360 reliability there wasn’t really any other course of action.

Shame it wasn’t done sooner though.

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