Microsoft announced today that they will repair the widespread problems with the XBox 360. Microsoft expects to spend over $1 billion in this process.

Xbox 360 owners will be glad to hear that Microsoft will extend the warranty on the console to three years. This comes after a large number of the game consoles broke down in what Microsoft calls a "general hardware failure."

Robbie Bach, president of Microsoft's entertainment and devices division, said "We don't think we've been getting the job done. In the past few months, we have been having to make Xbox 360 console repairs at a rate too high for our liking."

Microsoft will pay for shipping and repairs for three years, worldwide, for consoles that experience hardware failure, which is usually indicated by three flashing red lights on the front of the console, something gamers sometimes refer to as "the red ring of death." Previously, the warranty expired after 1 year for U.S. customers and 2 years for Europeans.

Microsoft also will reimburse the "small number" of Xbox 360 owners who have paid for shipping and repairs on out-of-warranty consoles, Bach said.

Analyst Mike Rosoff estimates that Microsoft's entertainment and devices division has lost more than $6 billion since 2002.

*I have read about other peoples problems with the 360, but other than mine sounding like a jet engine about to take off I have never had a problem with it. Anyone else experiencing this "widespread" problem?