RRoD A Result of Cost Cutting?
Categories: Microsoft
Written By: Daniel Roswell
This story is one of those one where it’s so unbelievable that it’s probably is true.
What it boils down to is that Microsoft wanted to save some money in the Production of the Xbox 360 console, they did this by designing their own graphics chip and avoiding an ASIC vendor and going with Taiwan Semiconductor Manufacturing Co. Ltd instead.
The ASIC (application-specific integrated circuit) Vendor in question is quite possibly ATI Technologies and it’s quite likely that Microsoft returned ATI to get the problem fixed, who would have redesigned the chip in question. It’s estimated that Microsoft lost over $1 billion due to the recall of 360s, which could have been avoided had they used a ASIC vendor and spent the required money to get it done properly.
EETimes (Via Slash Gear)
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