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Chris Hu said:

I still think a having no consoles for a long time would have been worse then the RROD.  Also during such a break Microsoft probably would have been thinking about upgading the hardware which would have increased the price of the console at launch.  Maybe they would have added a HD-DVD drive instead of a regular DVD drive since they supported the format when it launched.  That would have been a bigger mistake then the RROD also even with a 360 with a HD-DVD drive the format would have lost to Blu-ray eventually.  Also a hiatus is usually never good just look at all the grief Will Smith got this year for his hiatus even though MIB 3 did relatively good at the box office and his hiatus was voluntary since he wanted to spend more time with his family.

1) It's not because they're on hiatus that they need to add upgrades. It can, and most usually is at the end of a development cycle a QA phase, and as such they didn't need to add any new parts. On the flipside, they could have stocked up on some parts and reduced the cost to create a unit early on, even released their console at a better price!

2) A hiatus can be good, never say never. I can't think of a case off the top of my head, but Josh Brolin?? Robert Downy Jr.? Just a few that come to mind.

3) As I said, there's hiatus and hiatus. I'm not sure how long Will Smith's lasted tbh, since I'm not a fan.

So for a 1 extra year of Xbox support (so not a full hiatus, just a HW depletion), and the time to create a better console, I don't agree with you in the slightest.