Dean Takahashi delves in to the causes of the Red Ring of Death. In a meticulously researched 11,000 word article, Dean Takahashi of Venture Beat has written about the chronological series of events that led to the hardware failures faced by the Xbox 360. Often called the “Red Ring of Death”, it is a condition that describes when three flashing red lights light up the front of an Xbox 360 indicating hardware failure.
Takahashi reports in August 2005 during the early stages of the Xbox 360’s development warnings were already being raised but were ignored. An engineer raised his hand and said, “Stop. You have to shut down the line.” This wasn’t just a brief moment. The engineer spoke up repeatedly. According to the article that engineer, who remains anonymous, had deep experience in manufacturing. When production results were really off kilter, stopping a line and tracing a problem back to its roots was the answer. Managers and executives, higher-ranking engineers ignored the warnings and decided to go forward. At the time, 68 out of every 100 Xbox 360s made were not working. Worse still, when the first batch of the system's three-core CPUs rolled off the line, only 16 percent worked.
The implications of the “Red Ring of Death” issue are being felt to this day. In Takahashi’s own words:
The Xbox 360’s defect problem will go down as one of the worst snafus in consumer electronics history.