Those users who have been upset about the arrival of an E74 error generated by their Xbox 360 are going to be pleased to find out that Microsoft has acknowledged that it is, in fact, an issue that has affected a number of owners and the company will now cover the E74 error under warranty.

The news was announced today by none other than Major Nelson, and he is spinning it as Microsoft reaffirming its commitment that they will stand behind the products that they sell. The E74 error that has been associated with the three flashing red lights on the console will be covered under the already announced three-year warranty that covers the red ring of death failures.

As with the original announcement of the three-year warranty extension, some limitations apply, including the fact that you have to be the original owner of the console. The best news is perhaps that Microsoft will be reimbursing those who have already shelled out for repairs.

According to Microsoft the extension will apply to those who purchased consoles before or after the warranty change as long as you are the original owner of the console. We suggest that you should be prepared to show your purchase receipt or proof of purchase in order to get your console serviced.

You can find the official statement here