While Xbox 360 systems may be known more for the dreaded "red ring of death" than any other hardware failure, one gaming blog has been tracking the rise of the "E74" error, an issue that causes the console to crash and show a multi-language kill screen. You'll also get a single red section on your system's power button. Microsoft is aware of the problem, and has since amended it's three-year warranty to cover the error.

The story began when Joystiq started to receive complaints concerning the error. The site decided to gather some data, and found that complaints of the error increased after the release of the New Xbox Experience, or NXE. "One oddity is that there is no correlation between the dates on which the systems in question were purchased and when they went belly up," Joystiq writer Justin McElroy reported. "The error usually occurred after anywhere from 12 to 36 months of use, with many of you claiming that trouble arose on consoles that have already been repaired for Red Ring of Death. Whatever modifications Microsoft has made to the console to improve its reliability in the past years seems to have no bearing on the likelihood of E74."

The problem was that this issue wasn't covered by Microsoft's warranty; the company simply called it a "general hardware failure" and that was that. More sites jumped onto the issue, however, and found the same data: the E74 error was a widespread issue, and seemed connected to the NXE, although that might not be the direct cause of the issue. "The time frame for the rise in issues makes NXE and its November debut a suspect," Engadget wrote. "But it's worth noting that the uptick started just before that launch, so perhaps it has more to do with hiccups caused by spurred interest in turning on the console after a long period of dormancy."

Tuesday, Microsoft announced that it would do the right thing and extend the red-ring warranty to include the E74 errors, detailing the inclusion on its Xbox support site. "After investigating the issue, we have determined that the E74 error message can indicate the general hardware failure that is associated with three flashing red lights error on the console. As a result, we have decided to cover repairs related to the E74 error message under our three-year warranty program for certain general hardware failures that was announced in July 2007." Microsoft also claims it has made the necessary changes to decrease the likelihood of the error, and will refund the cost of E74 repairs to customers who may have already paid to have their console fixed or replaced.

It's gratifying to see Microsoft do the right thing, but yet another known hardware issue with the 360 won't do much to help the system's battered reputation; the red ring fiasco ended up costing the company $1 billion plus to make right. The "E74" problem won't likely cost anything near that amount, but the damage to the 360's shoddy hardware reputation won't be easy to quantify.

Listing image by Image courtesy of Joystiq