If you never experienced the Xbox 360"s Red Ring that Death, take into consideration yourself lucky. That sinking emotion players felt when they saw those flashing red lamp on their Xbox console display screen was truly upsetting in a distinctive way. The red-ring problem was so prevalent and serious that Microsoft had to take major steps come make certain the whole brand didn"t sink under the load of bricked consoles.

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The Red Ring that Death listed a seminal moment in Xbox"s history, shaping the future that the console wars. Fortunately, Microsoft is a huge company and also had the sources to do the problem right. It decided to produce an magnified warranty routine that used to both brand-new and previously sold consoles, lasting three years and completely covering any type of 360 that experienced the problem. The warranty, follow to an open letter from Xbox"s Peter Moore, would sheathe repairs, shipping, and whole-console replacements.

Moore claimed in an IGN podcast, together reported by Eurogamer, "If we hadn"t made the decision there and also then, and also tried to fudge end this problem, climate the Xbox brand and Xbox One wouldn"t exist today." The plan saved the Xbox however cost the agency a most moolah. Exactly how much, exactly?


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DesignNews, repeating secondary media reports, stated that the Red Ring of death may have influenced 23 to 54 percent of Xbox 360 users, that each shelled out $299-399 for their systems in 2005 and 2006. The adds up. In fact, Microsoft revealed the the cleanup would include a $1.05-1.15 billion fee to its results for the financial 4 minutes 1 that ended in June 2007.

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The fix forced Microsoft come send empty FedEx boxes to client so they could ship devices to the company, and Microsoft would ship castle back. Moore told IGN, "I always remember $240m of the was FedEx. Your stock must have actually gone v the roof because that the following two weeks."

An analyst who complied with Microsoft in that era told CTV News the he approximated its entertainment and also services division had shed $6 exchange rate from 2002 to 2007, for this reason the console service hasn"t necessarily to be a moneymaker because that Microsoft. However, the Xbox is part of Microsoft"s as whole gaming strategy that contains software, PCs, and also other components of the company — and it"s very feasible that this would certainly look very different if the Xbox 360 hadn"t made it through the Red Ring of Death.