Gamasutra is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


Gamasutra: The Art & Business of Making Gamesspacer
View All     RSS
August 2, 2021
arrowPress Releases
If you enjoy reading this site, you might also want to check out these UBM Tech sites:


How the Xbox 360 'Red Ring of Death' cost Microsoft $1.15 billion

How the Xbox 360 'Red Ring of Death' cost Microsoft $1.15 billion

July 2, 2015 | By Alex Wawro




Back in 2007, the fact that Microsoft spent over a billion dollars to improve its Xbox 360 warranty and repair policies became a popular game industry talking point; at one point as many as 23.7 percent of Xbox 360 owners were reporting console failures, many of which were accompanied by the infamous "Red Ring of Death."

But in an IGN podcast published this week, former Xbox exec Peter Moore shed a bit of light on what it was like to be working at Microsoft during that period, and to be sitting across the table from one-time Microsoft chief Steve Ballmer explaining that the Xbox 360 was going to cost the company an extra $1.15 billion.

"I am trembling sat in front of Steve, who I love to death, but he can be an intimidating human being. Steve said, ‘Okay, talk me through this.’ I said, ‘If we don’t do this, this brand is dead,'" recalled Moore.

"If we hadn’t made that decision there and then, and tried to fudge over this problem, then the Xbox brand and Xbox One wouldn’t exist today."

Microsoft went on to invest in a redesign of the console that addressed some of its shortcomings, and the Xbox 360 continued to see strong sales throughout its lifespan. However, the Xbox business has declined in recent months.

You can hear more of Moore's recollections of his time at Microsoft, as well as comments from his fellow guests (and fellow Microsoft veterans) Phil Spencer and Seamus Blackley, in the latest episode of IGN's Podcast Unlocked.



Related Jobs

Sparx* - Virtuos Vietnam
Sparx* - Virtuos Vietnam — Ho Chi Minh, Vietnam
[08.02.21]

Environment Art Team leader
Sparx* - Virtuos Vietnam
Sparx* - Virtuos Vietnam — Ho Chi Minh, Vietnam
[08.02.21]

Lead Level Artist
Remedy Entertainment
Remedy Entertainment — Helsinki, Finland
[08.01.21]

UX Designer
Remedy Entertainment
Remedy Entertainment — Helsinki, Finland
[08.01.21]

Senior UI Designer









Loading Comments

loader image