Best buys 2 year extended warranty will exchange the 360 the 1st year off of microsofts warranty then the 2nd year offers a one time exchange! how ever you can pay an additional $50.00 for another 2 year warranty which works just like the 1st warranty! also costco up until recenty would have a no questions asked exchange! I agree that alot get sent back to MS and fixxed but there are alot of places even Sams club probably just exchanges them. Consider this fact best is the largest electronics retailer in america it could be 2-3 % of standing inventory sold back to the same customer! ButI dont get the big deal this worked the same way for xbox and PS2. I went thru 3 ps2 and x3 box. also my launch 360 with over 20000 achievements finally melted during a 5hr session with viva pinata the intercooler on the back melted to the 360. I excahnged it at BB the girl didnt use my warranty so Iam still covered til nov. the one plays for an hr and reboots in 6 days Ill exchange it for a elite and pay only $80.00 plus the new extended warranty and pray it works right so Iam not part of the ever inflating sales figures on nexgen consoles!!!! 
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