Microsoft Extends Warranty of Xbox 360's Afflicted With RROD to Three Years

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Microsoft will take a $1 billion charge to fix Xbox 360 consoles

http://www.dailytech.com/Microsoft+Extends+Warranty+of+Xbox+360s+Afflicted+With+RROD+to+Three+Years+Offers+Apology/article7945.htm

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Note that the 1 billion figure is only the amount of money set aside for repairs, not the actual cost of repairs it self. I wouldn't expect it to cost anywhere like that, but 1 billion sounds more impressive.

I like the 3 year warranty though - most consumer electronic devices only come with 1 year warranties, which is never really enough (I always get the extended warranty, especially for anything over $500).