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X360 video service issues

MS promises refunds.

Microsoft has said it will refund any money lost by American gamers struggling with its new Video Marketplace service, which went online on Wednesday.

The service allows Xbox Live users in the US to download film and TV show content in standard and, in some cases, high definition formats.

However, high levels of interest among the 360's userbase have left the service reeling, with Xbox Live's Major Nelson admitting, "these technical issues have resulted in a very unpleasant experience for our members, including extremely slow downloads or not receiving the content they purchased".

Microsoft says a team is working around the clock to sort out the problems, and anybody who has experienced a problem or lost points to a purchase but not completed the download should call 1-800-4MYXBOX.

There's also a Video Marketplace forum on Xbox.com where staff will try and answer questions.

"Thanks for your patience, and please know that the team is prepared to make things right for those affected, including refunding Microsoft Points where appropriate and as quickly as possible," Nelson's blog concludes.

Video Marketplace has yet to launch outside the US, due to the complexity of the content licensing deals that allow it to operate, but Microsoft has previously said it hopes to introduce the service elsewhere in the future.