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

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The Red Ring of Death provided a seminal moment in Xbox"s history, shaping the future the the console wars. Fortunately, Microsoft is a big company and also had the resources to do the difficulty right. It decided to create an amplified warranty routine that used to both brand-new and formerly sold consoles, lasting 3 years and totally covering any kind of 360 that proficient the problem. The warranty, follow to an open letter native Xbox"s Peter Moore, would cover repairs, shipping, and also whole-console replacements.

Moore declared in one IGN podcast, as reported by Eurogamer, "If us hadn"t made that decision there and also then, and tried come fudge over this problem, climate the Xbox brand and Xbox One wouldn"t exist today." The policy saved the Xbox yet cost the agency a many moolah. How much, exactly?


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DesignNews, repeating second media reports, said that the Red Ring of fatality may have impacted 23 come 54 percent that Xbox 360 users, who each shelled the end $299-399 because that their equipment in 2005 and 2006. That adds up. In fact, Microsoft revealed the the cleanup would add a $1.05-1.15 billion charge to its outcomes for the financial 4 minutes 1 that finished in June 2007.

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The fix compelled Microsoft come send empty FedEx crate to customers so they could ship systems to the company, and Microsoft would ship castle back. Moore called IGN, "I always remember $240m of that was FedEx. Their stock must have gone through the roof because that the following two weeks."

An analyst who adhered to Microsoft in that era called CTV News the he estimated its entertainment and services division had lost $6 billion from 2002 to 2007, for this reason the console company hasn"t necessarily been a moneymaker for Microsoft. However, the Xbox is component of Microsoft"s as whole gaming strategy that consists of software, PCs, and other parts of the service — and also it"s very possible that this would look really different if the Xbox 360 hadn"t made it through the Red Ring the Death.