Microsoft spent $1.15 billion fixing Red Ring of Death

Microsoft spent $1.15 billion fixing the Xbox 360’s Red Ring of Death issue.

Speaking to IGN, Peter Moore, the former head of Xbox, said that the Xbox brand wouldn’t be around today without spending the cash to put it right.

He said: “I calculated with my finance team, Dennis Durkin, Doug Ralphs… $1.15bn, right out there. I always remember $240m of that was FedEx. Their stock must have gone through the roof for the next two weeks.

“And, I am trembling sat in front of Steve [Ballmer], who I love to death, but he can be an intimidating human being. Steve said, ‘OK, talk me through this’. I said, ‘If we don’t do this, this brand is dead’.”

The Red Ring of Death was named after the Xbox 360’s flashing red lights, which would signify a hardware failure.

Moore believes the problem was caused by using a lead-free solder due to European laws.

David Wriglesworth

David Wriglesworth is a Northern lad with a passion for gaming, who graduated from the University of Lincoln with a BA (Hons) Journalism degree. If you can drag him away from the consoles, you can probably find him Tweeting or watching Coronation Street.

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