Xbox 360's RRoD cost Microsoft $1 billion

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TroyTheAverage

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It wasn't unusually difficult end bosses or rampant cheating in online multiplayer titles that once caused gamers to have nightmares. What used to keep players up at night were tales of the dreaded Red Ring of Death (RRoD)—three red lights around the Xbox 360's power button that indicated the console had entered the afterlife. That phenomenon cost Microsoft $1 billion.

That figure is the result of extended warranty coverage and subsequent repairs and replacements. In his book, "Xbox Revisited: A Gameplan for Corporate and Civic Renewal," former Xbox boss Robbie Bach describes a time when a group of team leaders met in his basement to discuss the wave of complaints over defective Xbox 360 consoles. It was a "long, difficult conversation," and at the end they all agreed "to extend our warranty to three years and repair and replace every console affected."



image: http://hothardware.com/ContentImages/NewsItem/37273/content/Xbox_360_RRoD.jpg

Xbox_360_RRoD.jpg

This is not a sight any Xbox 360 ever wanted to see

What they didn't anticipate was that repairing and replacing all affected consoles would add up to $1 billion, but it did. To this day, that's a tough pill to swallow for Bach—in an interview with Tech Insider, Bach called it "the biggest decision I made in my 22 years at Microsoft, no question." His book was released in 2007 and it's still haunting him nearly a decade later.

The Xbox 360 was doomed from the start. Bach says the problem ultimately boiled down to focusing on design first and engineering second. More specifically, Microsoft had a shell in mind, a certain aesthetic it wanted for the Xbox 360,and it was the engineering team's responsibility to fit all the parts inside.

image: http://hothardware.com/ContentImages/NewsItem/37273/content/Xbox_360_Consoles.jpg

Xbox_360_Consoles.jpg


As anyone who's ever built a PC knows, the smaller the enclosure, the higher the risk of heat causing a problem. The Xbox 360 can be viewed as a small computer in that sense, and though Microsoft tested the design before selling the finished product to the public, it didn't encounter the RRoD problem that it would later face.

Once users started complaining of premature failures, the rush was on to figure out what was going on, but that's no easy process. Bach and his team would analyze defective models to see if they came from the same production batch and to look for other similarities. And it didn't help that the RRoD only indicated a fatal failure, which could have been related to any component inside the Xbox 360.

According to Bach, it wasn't until Microsoft released the Xbox 360 S model in 2010 that the problem was truly fixed. However, the mark it left on him still lingers today.


Read more at http://hothardware.com/news/xbox-360s-red-ring-of-death-1-billion-microsoft#MVWHkPpTCwvEtK5o.99
 

Deezy

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Never bought a 360 after I got red ringed when I only had the thing for a month. Sony and Sony only from now on.
 

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I've never had one red ring on me. My original white 360 I bought still runs to this day. I don't have it anymore, but my nephew does and he played the hell out of it. I have an Elite that has run perfectly for 4 years now and I just got a 360 Slim that runs fine. I've known many people that have owned 4-5 360's that all red ringed on them. If it had happened to me, I wouldn't have ever owned another Xbox again.
 

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Mine only red ringed on me one time after having it for a little over a year. Sent it out to be repaired, and got one back that I thought was a refurbished console but I realized that it was my original console.

Other than that I had disc tray issues, but I got that repaired at a local repair shop. I never had any real issues with mine other than those, but my buddy went through like three or four consoles that red ringed on him.

Mine sits in storage now because I have an XboxOne and play that more.
 

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Had to fix the cooling fans yourself in order to get the system to stop over heating. And I wasn't going to do that tbh.
 

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I did pay $30 extra dollars for the fan you could hook up to the outside of the console on the first one. I felt it needed to be done just so I didn't have to take that chance.