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Well, obviously the name "Red Ring of Death" derives from the "Blue Screen of Death", and it probably caught public attention by recalling Microsoft's perpetual lack of quality in everything they do. In other words, people who don't own a 360 can sympathize because they have to put up with Windows on a daily basis.

I find it amusing because I don't have a 360 and I don't use Windows. Even if they have better games, it's just not worth it.