In a letter published on Xbox.com, Peter Moore announced that as of today, all Xbox 360 consoles will be covered for three years from the date of purchase for the common red ring of death hardware failure issue. Those who've paid for repairs in the past will be refunded over the next few months. Moore wrote,

"You've spoken, and we’ve heard you. Good service and a good customer experience are areas of the business that we care deeply about. And frankly, we've not been doing a good enough job.

As of today, all Xbox 360 consoles are covered by an enhanced warranty program to address specifically the general hardware failures indicated by the three flashing red lights on the console."

Moore also claimed that Microsoft have identified the causes of the failure, and will be integrating a permanent solution for all new Xbox 360 consoles manufactured, and those sent in for repair.

"We have been following this issue closely, and with on-going testing have identified several factors that can cause a general hardware failure indicated by three flashing red lights on the console. To address this issue, and as part of our ongoing work, we have already made certain improvements to the console."

Xbox 360 gamers will long remember this as the day Microsoft finally stepped up to the plate, addressed the very real issues with the Xbox 360 hardware, and announced a permanent solution.

"If we have let any of you down in the experience you have had with your Xbox 360, we sincerely apologize."

While we still don't know exactly what Microsoft will be doing to fix the problems, chances are the new heatsinks seen in various countries recently on refurbished consoles is the fix mentioned by Moore. A warranty FAQ has been uploaded, should you have any more questions.