
Originally Posted by
Caswallawn
actually the RROD cost MS billions in the long run, it wasn't just a case of the heatsink as it was possible to reduce your risk of it happening with some washers and correctly applied thermal paste, but even after that it was still possible to get the RROD.
the real reason for it was because MS decided to in house produce the consoles to save money, something that was always a bad idea as MS is a software house, but it is hard to outsource the creation of console hardware as all the profit comes from licensing (the PS3 and 360 both lost between $100-$200 each console sold at launch) but due to MS cutting corners they use inferior PCB and a clamp system that could cause the motherboard to flex and warp, this coupled with the cheap solder used to hold components caused microcracks in the solder disconnecting RAM chips and in some extreme cases the CPU/GPU, this is where the oven/towel trick came from as you got the heat that hot the solder melted and resealed the cracks.
so the RROD was an easy fix to fix it as a one off, but it took MS about 14 heatsink and clamp revisions and changing the manufacturing firm to actually solve the problem, I seem to remember reading in repairs/replacements and R&D it cost MS somewhere around $4billion to deal with the RROD and all because they tried to save money on production costs.
as for MS making money for out of warranty repairs in the EU all 360's no matter the age had to be repaired free of charge if they got the RROD, the EU courts even backed this up as they classed the device as having been sold not fit for purpose meaning MS was 100% at fault and had to pay for the repairs.