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Microsoft Extends 360 Warranty to One Year
Gamasutra reports that Microsoft has extended the warranty on the Xbox 360, giving consumers one year from their date of purchase to receive essentially free repairs. This is being done to put the U.S. and Canada in line with the warranty offered in other parts of the globe, and is retroactive. From the article: "... [C]onsumers who may have already paid for an out-of-warranty Xbox 360 repair within one year of purchase will be eligible for reimbursement of their console repair charges. Microsoft notes that those who have already paid for such repair charges within their first year of ownership can expect reimbursement checks for the amount of their console repair in approximately 10 weeks. The company adds that reimbursements will be automatically distributed, so customers do not need to contact Microsoft directly."
And indeed they probably have to. I don't know about the US but in most countries (the UK for one) your contract of sale is with the store. They have to deal with the manufacturer while it's under manufacturers warrenty, not you.