http://kotaku.com/5211159/microsoft-extends-warranty-for-e74-failures

"For a few months now, Xbox 360 users have been quietly venting about a "new" hardware fault with the console, where instead of displaying three red rings, machines would display an "E74" error.

Just because it didn't flash the iconic red rings, though, doesn't mean it wasn't bad! If you got it, your console would flash a system error warning (pictured above), and it meant your machine was fried. Which is probably why Microsoft have decided to issue an extended warranty for the fault, similar to the one offered to red ring sufferers.

"While the majority of Xbox 360 owners continue to have a great experience with their console, we are aware that a very small percentage of our customers have reported receiving an error that displays "E74" on their screen. After investigating the issue, we have determined that the E74 error message can indicate the general hardware failure that is associated with three flashing red lights error on the console. As a result, we have decided to cover repairs related to the E74 error message under our three-year warranty program for certain general hardware failures that was announced in July 2007."

That's the, uh, "good" news. The better news? If your machine suffered from an E74 previously, and you had to pay for repairs, Microsoft will refund you the amount some time over the next 4-12 weeks.

Just when you thought it was safe to go back in the water! leave your 360 alone without fear of it dying in your arms!"

---------------------------------------------------------------------------

Whoa, this is quite serious then. More so than I expected at least! But how can such a serious error crop up like this? It has to be pretty serious when they are extending the warranty for it.

But I'm glad Microsoft are at least acting on it.

Good move microsoft good move, now more people will buy 360s.

Crazyness. Good to hear that once again MS are willing to shoulder the cost.

As for how the error can only be appearing now. I think it was not seen earlier because of RROD. A console would get RROD and be replaced before the E74 could strike. Now with RROD out of the way and more 360s in the wild E74 is becoming more common

At least the failure rate is nowhere near 33% so at least as the generation goes on 360s are getting more and more reliable that can only be a good thing.

Good to hear, and even better that they'll be giving refunds to those who had to pay out of pocket. Hopefully they've learned their lesson about shitty hardware.

I got E71 or something.. wonder what that is.

I'm hoping that they learn their lesson and put a little more care into manufacturing their next console. I can imagine just how disheartening it is to gamers who run into such problems. My good friend had a similar occurance with his PS3 and was very distraught!

Good to see Microsoft taking responsability!

I think they are fearing that this error will bring as much backlash as RRoD, so they have decided to act fast on it. Which I think is the right move.

its good they are willing to pay the costs, this tells me this new error is a major thing for them.

so the most you can have a 360 is now 3 year before you may have to buy another one. it sucks.

i highly doubt this gens consoles will still be sold on ebay 20 years down the line unlike snes megadive