We just wanted to clear up a rumour that began to circulate at the end of last week regarding reports on the net that UK retailer, Marks & Spencer were refusing to stock Microsoft's Xbox 360 due to its poor reliability. The news was reported on PlayThree.net and then escalated to a number of other gaming websites and forums. We contacted Marks & Spencers to ask them why they had made such a big decision not to stock the console. It turns out that the news wasn't correct at all.

"The information regarding Marks & Spencer Technology on www.playthree.net is not correct. Customers can be assured that Marks & Spencer offer a range of gaming packages that will suit their requirements.

Microsoft's Peter Moore has recently spoken out and admitted that the company are at fault for the Xbox 360 hardware issue , which has seen thousands of consoles being returned for repair since the launch in 2006. Microsoft say that the problem, which specifically relates to the 'three red rings of death', is related to several factors, but declined to go into further detail. However, Moore did say that Microsoft have 'not been doing a good enough job ' dealing with the issue and as a result have reviewed their policy on repairs.

Microsoft confirmed that all new Xbox 360 consoles and those already in the public domain will today be covered with a three year enhanced warranty program and they'll refund everyone who has already paid for their repair - if it's related specifically to the 'three red rings of death'.

Microsoft have said that the move will cost them at least $1 billion and they will "take a US$1.05 billion to $1.15 billion pre tax charge to earnings for the fourth quarter that ended June 30 for anticipated costs under its current and enhanced Xbox 360 policies."