Newsweek recently held an interview with Microsoft VP Peter Moore regarding the announcement of a three year extended warranty. Moore responded to a whole string of questions and summarised that two key things will happen - MS will reimburse all those who paid for their Xbox 360 to get fixed and secondly if you have a problem with your box, MS will simply replace it, Moore asserts that this is the right thing to do and not about PR. Further to this, he denied that Xbox 360 failure is not an issue for recall as it is not a systemic problem and is a completely voluntary action from MS.

If someone already has a refurbished box, is this for repair? New Xbox 360s? What is it exactly?

We're going to send you a box. I'm not going to get into details of exactly what that box is, but our goal is to take care of you. Two things here: if you paid us to fix your box, we're going to reimburse you. Simple as that. If you have a problem with your box, we're going to replace it.

Did you consider a recall?

No. This is not a recall issue. This is not a systemic problem, this is not a safety issue, this is a completely voluntary action on our part. Nobody's forcing us to do anything here. We're just trying to do the right thing.

Or did you feel like, "Hey, we've dodged a bullet on this so far—let's take care of this now"?

No. This is not about PR. This is not about making us look good. This is about doing the right thing. If you're going to worry about PR, you probably wouldn't do it five days before E3. If you're worried about PR, you'd wait until people went on vacation, I don't know. We needed to make that sure we did the right thing.