"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," reads a Microsoft support page, updated today, noticed by Kotaku.
"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. We have already made improvements to the console that will reduce the likelihood of an occurrence of this issue."
Refunds for eligible E74 repairs should go out within the next 4-12 weeks, Microsoft said. However, if no refund is received by July 1 of this year, a refund claim will need to be filed at at www.xbox.com/support before November 1, 2009.
Thanks to Dave-A for the tip.
I used to get random E74s before my 360 red ringed and died.
They happened on day one, fresh out of the box.
I've purchased two 360's for my nephews, two for myself in the past two years. 3 systems have RROD'd in the past year. Of course two or their neighborhood friends have had RROD failures. Even by chance, that is a significantly high rate of failure. With that said Microsoft has honored the warranty.
I can only imagine what the numbers behind the E74 defect are.