E3 hasn't started yet, but the big announcements have already started flying. Today Microsoft announced that it was extending warranty coverage for three-red-lights hardware failures to 3 years from date of purchase. Microsoft will also retroactively refund system owners that had to pay for console repair costs in the past.
It's a good move that will hopefully begin to close the news cycle on the Xbox 360 failure rate story that has taken off over the past month. You don't want that kind of story waiting to explode going into E3 if you're Microsoft. Just imagine putting Peter Moore into a room full of gaming journalists that all want to ask about Xbox 360 reliability issues instead of Halo 3 or GTA IV.