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It depends on wether or not it is still in warranty. If it's still in its 3 year RRoD warranty period, Microsoft will usually repair it for free, or send you a refurbished console. If its warranty period has expired, or if the warranty sticker has been removed or damaged, you will need to pay for a repair or refurbished console.

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Q: If your XBOX 360 gets the rrod red ring of death can you send it to Microsoft and get another free or do you have to pay?
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