Former Xbox Head Reveals Microsoft Spent Over $1 Billion On Red Ring of Death

There are a few leading companies for the video game industry but it was a relatively new industry still for Microsoft during the Xbox 360 era. After the launch of the Xbox and seeing some notable numbers, Microsoft pushed on to be a leader in this industry but it wasn’t going to be something that Microsoft would be able to get through without a few obstacles. If you recall not that long ago Edge spoke with the original Xbox console creator and had to trick the company into building a video game console to begin with.

Now Edge has moved on to the Xbox 360 era as they spoke with Peter Moore the former head of Xbox. At the time, Microsoft was moving on to the next console release which the Xbox 360, a rather successful hit. However, if you recall the early generation of Xbox 360 units had a major problem that could spark the dreaded red ring of death. There were a few reasons this could be triggered but it ultimately meant that the Xbox 360 was toast and needed some repairs.

Peter Moore recalled that this was a massive problem and it actually cost over $1 billion to repair units as they were being sent in. With this number, Peter went to the Microsoft CEO at the time, Steve Ballmer, and told him the number. Steve Ballmer was quick to eat the cost and make the Xbox 360 a success which leads the company to launch the current-generation Xbox One. It’s a massive number for a company to endure, but Microsoft had enough resources to see it through.

“You know, you expect to get your head blown off, but Steve is an astute businessman who recognizes that things can go wrong. Steve saw the big picture: it’s not that things go wrong, it’s how you fix it. And the moment I had to present the facts and the cost, saying, ‘Look, this is what we think that it looks like…’ Steve didn’t blink, and rightly so.”

Peter Moore

For Microsoft, it was all about the big picture and getting the Xbox brand out there. With obstacle, Microsoft was able to repair the console and move on in hopes that consumers would forget about the mess after their console came back in working order.

Source: Gamesradar