Known in the Xbox community as the "Red Ring of Death", the hardware failure is indicated by three flashing red lights on the console.

Microsoft finally capitulated earlier this month, saying it would extend the console's one-year warranty to three years for this specific hardware failure.

Up till now many customers had been turned away to pay for the repairs themselves if the failure was just outside the one-year warranty.

Under the Consumer Guarantees Act, gamers here could have claimed the cost of repair from retailers because the failure occurred during the reasonable working life of the Xbox 360.

Microsoft says it will also reimburse those customers who have paid to have the problem repaired. The repair bill is expected to cost Microsoft more than $1 billion worldwide.

For more information on the Xbox 360 warranty extension, as well as how you can claim a refund for your repair costs visit www.xbox.com or phone 0508 555 592.

Got a question or comment on this topic? Share your views and experiences with other Consumer members...