Microsoft will be bearing about $1 billion in costs resulting from Xbox 360 extended warranties, reports the BBC.

Significant hardware failures have resulted in Microsoft taking up significant slack in scores of repairs and replacements. The hardware problem, which was not described, is apparently now a widespread issue.

In addition to machines under warranty, the company is also repairing consoles whose warranties have expired. Anyone who suffers the unnamed problem is receiving a free three-year warranty.

Microsoft will cover costs of expired warranties, including postage, to retain customers and ease frustration.