Microsoft Xbox Red Ring of Death - The Cure?

If you have come to this article seeking a solution to the Red Ring of Death then scroll down to the end. If on the other hand you want an insight into how to sell unreliable products to folk and still have a business then read on.

For those not familiar with the Red Ring of Death, it is a warning sign on Xbox 360 games consoles that indicates a General Hardware Failure. In other words the machine won’t go and isn’t going to go even if you reboot it, unplug it, shake it, or wrap it in a towel. Microsoft, the maker of the Xbox 360 has sold 19 million units around the world and a huge number has been afflicted with the Red Ring of Death. I spoke to one authorised repairer this week which receives 150 broken units per week – that’s nearly 8,000 every year. The problem is so bad that Microsoft has extended the guarantee on Xboxes to three years (but only for this fault).

If you Google the words ‘Red Ring of Death’ you get nearly a million results including a Wikipedia entry and a YouTube video demonstration. Most of the results are a souk of mountebanks, phonies, quacks, swindlers and con men (that's where th etowel idea comes from - it doesn't work)plus no doubt honest believers and solid engineers all pedalling solutions for cash. So the problem is well known amongst the gaming community; if this were a car or a washing machine it would be withdrawn from sale immediately and Microsoft’s brand name wrecked for years. How is it then that Microsoft can continue to ship units regardless?

The conclusion must be that this is a fashion product and in the world of fashion what matters most is having the latest thing. Never mind that your legs look dreadful in a short skirt or that wearing black makes you look like a mortician, if it’s in then you must have it – end of discussion. For the target market for games machines it’s the same thing, having the product is more important than its design or reliability. If my father were buying a console he would check the reliability stats in the consumer press but the people who are in the market for a console care only about the software they can play with their mates. The Red Ring of Death is on their agenda with the same importance as pension planning (i.e. not at all).

Where else have we seen this kind of behaviour recently? Oh yes, that would be the financial services industry; where getting a position in debt securitisation and bond distribution became a must have fashion item for many of the world’s banks and brokers. They became more interested in what games they could play now than how reliable their model was. And it’s not a one off. The financial services industry is prone to these flights of fashion but at the same time claims to be incredibly conservative.

For the Red Ring of Death the problem is caused by overheating (gosh it really is like financial markets!) the cure is to replace the components(ditto). So send it back to Microsoft under the three year extended guarantee. Microsoft used to take some time to return equipment but I understand that turnaround time is down to a week or so. This is the only sane solution and it costs only the postage.

To fix the banking system, well, that may take a little longer and cost a little more.