Customers who have purchased an Xbox within the last year will automatically qualify for the new warranty, effective from the date of purchase. Owners who have already paid for a repair, but who would have qualified for a free warranty service otherwise, can apply for a refund.

The Xbox 360 is facing increased competition with the recent release of Nintendo's Wii and Sony's PS3, though it has still performed well in pre-Christmas online searches. Microsoft's recent strategies to attract customers include development tools to build games for the console.
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