The Xbox One wouldn't have happened if Microsoft didn't pay

Jul 3, 2015 17:45 GMT  ·  By

Former Xbox division overseer for Microsoft, Peter Moore, confirms that the Xbox 360 Red Ring of Death (RRoD) debacle required the corporation to spend about $1.15 billion (around €1 billion) in order to solve. The prompt investment, however, saved the brand's future, including the current Xbox One.

The original Xbox console wasn't exactly a profitable endeavor for Microsoft, but the corporation put most of its efforts behind the Xbox 360. Unfortunately, right after launch, many owners reported complete hardware failures, which were represented by a red ring displayed around the power button.

The Red Ring of Death debacle required a lot of money to solve

Peter Moore, currently an executive at Electronic Arts, worked at that time for Microsoft and confirms to IGN that he went to Microsoft CEO Steve Ballmer with a projected expense of $1.15 billion / €1 billion.

Moore complements Ballmer for his quick acting, as the expense was cleared right away and the Xbox division started covering shipping and replacement costs, not to mention research and development into just why the hardware failed.

Moore even goes so far as to say that the RRoD investment saved the Xbox brand overall, and ensured that the Xbox 360 would become a success, and that the Xbox One actually exists.

"If you’re an Xbox gamer, you can thank Steve Ballmer for not even hesitating. Now, we were a wealthy company who could afford to do that, but not even hesitating because the brand was more important. 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," he explains, via VG247.

The Xbox One is still playing second fiddle to the PS4 in terms of popularity or sales, but things are still going quite well for the Microsoft console, and the upcoming Windows 10 OS release is set to bring even more features and capabilities.