You have the RROD (red ring of death). Luckily it is now covered by microsoft warranty so call them up and send it back to be fixed.
Alternatively, if for some reason you have no warranty (bought it used, warranty expired) I have heard there is a method to try and fix it by wrapping the 360 in a towel and leaving it on for like 5 or 6 hours. Some people have had success, others just made it worse. You may want to google it to find better instructions as I have never tried it.
The most common cause of the rrod is that it overheats and part of the motherboad between the gpu and the cpu warps and they lose connection. So somehow by blocking the vents with a towel and leaving it running it reconnects these joints. However I have heard that it is likely to get the problem again after trying this method, so just send it to microsoft if you can.
The towel method is a quick fix, but it's not going to solve the problem. Just open the xbox and resolder the joints with leaded solder. Microsoft was cheap and used solder that just doesn't hold up under the heat the unit produces, causing all the problems we saw in the first generation of 360s that hit the market.
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If you have the 3 rings of Death (3 Flashing Red Lights) on your xbox 360 console, all you need to do is to contact Xbox Support and report this issue with them. The Console has a 3 year warranty for the 3 flashing red lights. Just make sure you did the following first:
1. Power Cycle your Console (Turn it off, unplug the power adapter from the wall outlet, wait for 30 seconds, turn it back on)**This is the best solution and it usually works!!
2. If still persist, Turn it off, remove any accessories connected to it (Hard Drive, Controllers, etc.) turn it back on without those accessories. **These accessories sometimes causes the problem.
3. If removing these accessories removed the 3 flashing lights, attach the accessories one at a time, every time turning it off and attaching one and turning it back on checking each time if the red lights (any lights) appeared. It will tell you what is causing the error.
4. If all else fails, again CONTACT XBOX TECH SUPPORT on their Toll free number. Make sure that you tell the tech that you have done those things above so they can create a report for the issue. They love the 3 flashing red lights issue. I should know, I am formerly one of them. :)
OK, I'm assuming your console has 3 flashing red lights, if that is the case there's not much you can do for the Xbox, 3 flashing red lights is a problem with the mother board in your console, now there is a temporary fix you could perform your self but that doesn't always work, its a 50/50 chance, personally id play it safe on this one and check to see if your warranty is still good, if so all you have to do is contact Microsoft and explain to them about your red lights, they'll then ask you to plug out everything and plug it back in, when that fails to work they will send you out tags in your e-mail, once you receive the tags stick them to the box that contains your console and await collection. It usually takes up to 5-7 weeks before your u get your console back.
The red flashing lights are a sign of a fault
with your console. firstly if you get the 3 red lights then microsoft
reapair your console for free so long as you purchased it no more than 3 years
before you send it back for repair. The 3 red lights are a sign of overheating the 360
motherboard is able to flex a little, when the 360 was turned off and cooled
down these solder balls solidified again, however they solidified in the wrong
place or in two halfs etc. and so the 360 shows the 3 red lights to indicate
Well you're either in luck, or in deep trouble. If you have bought your xbox 360 within 3 years, you have a special warranty provided by Microsoft. Call them or go to their support site, and list the problem as having three red light flashing. IMPORTANT it has to have 3 red flashing lights, with only the top right not flashing to have the warranty. They will send instructions and a box, and you just have to wait
It might be Red ring of Death problem, You can either send your Xbox
toMicrosoft and wait for 2-3 weeks till you get back your Xbox or you
canfix the problem yourself with the help of a DIY fix guide. Check out the post discussing about RROD problem here: http://www.fix-xbox360.info/2008/08/23/xbox-360-red-light-fix/ Hope it helps...
When you turn on the console, look at the light on the power supply. The power supply light should illuminate green even if the three lights on the Ring of Light flash red. If the power supply is button is red than you need to replace the battery or check the connections.
The three flashing red lights may indicate that there is a hardware problem with your Xbox 360 console. If you are experiencing this problem, you can submit a console-repair request online.