Microsoft spent approximately $1.15 billion to address the 'Red Ring of Death' issue on the Xbox 360, where three flashing red lights indicated hardware failure.
Former Xbox leader Peter Moore believes that this investment in rectifying the problem was crucial in preserving the future of the Xbox brand.
The extensive cost covered extending warranties and shipping expenses for customers who had to send their consoles back to Microsoft for repair.
Moore emphasizes that without addressing the issue, the longevity and success of the Xbox brand could have been jeopardized.