From G4: Microsoft will now have...

[reiella]

It's a good move on MS's part, extend the warranty to match their expected lifespan on the console. It's a good move to help counter the buzz on part of the overworked european repair centers.

However, this is going to increase the cost per unit on each box, and reduce margins for their retail partners [you're less likly to buy that Point of Purchase warranty programs if the console has a 3 year warranty bundled]. My expectation of a price drop this winter has been lowered, unforunately.