Xbox Original Dev Kit

[Manases Blakemore]

TheXbox is a home video game console manufactured by Microsoft that is the first installment in the Xbox series of video game consoles. It was released as Microsoft's first foray into the gaming console market on November 15, 2001, in North America, followed by Australia, Europe and Japan in 2002.[3] It is classified as a sixth-generation console, competing with Sony's PlayStation 2 and Nintendo's GameCube. It was also the first major console produced by an American company since the release of the Atari Jaguar in 1993.

The console was announced in March 2000.[12] With the release of the PlayStation 2, which featured the ability to playback CD-ROMs and DVDs in addition to playing games, Microsoft became concerned that game consoles would threaten the personal computer as an entertainment device for living rooms. Whereas most games consoles to that point were built from custom hardware components, the Xbox was built around standard personal computer components, using variations of Microsoft Windows and DirectX as its operating system to support games and media playback, and featuring a 733 MHz Intel Pentium III CPU and a 233 MHz Nvidia GeForce 3-based NV2A GPU, the latter two making the Xbox technically more powerful compared to its rivals.[13] The Xbox was the first console to feature a built-in hard disk.[14][15] The console also was built with direct support for broadband connectivity to the Internet via an integrated Ethernet port,[16] and with the release of Xbox Live, a fee-based online gaming service, a year after the console's launch, Microsoft gained an early foothold in online gaming and made the Xbox a strong competitor in the sixth generation of consoles. The popularity of killer app blockbuster titles such as Bungie's Halo 2 contributed to the popularity of online console gaming, and in particular first-person shooters.[17]

The Xbox had a record-breaking launch in North America, selling 1.5 million units before the end of 2001, aided by the popularity of one of the system's launch titles, Halo: Combat Evolved, which sold a million units by April 2002. The system went on to sell a worldwide total of 24 million units, including 16 million in North America; however, Microsoft was unable to make a steady profit off the console, which had a manufacturing price far more expensive than its retail price, despite its popularity, losing over $4 billion during its market life.[18][19][20][21][22] The system outsold the GameCube and the Sega Dreamcast, but was vastly outsold by the PlayStation 2, which had sold over 155 million units by the system's end of production.[23] It also underperformed outside of the Western market; particularly, it sold poorly in Japan due to its large console size and an overabundance of games marketed towards American audiences instead of Japanese-developed titles.[24] Production of the system was discontinued starting in 2005.[6][7] The Xbox was the first in an ongoing brand of video game consoles developed by Microsoft, with a successor, the Xbox 360, launching in November 2005, followed by the Xbox One in 2013 and the Xbox Series X and Series S consoles in 2020.

Before the Xbox, Microsoft had found success publishing video games for its Windows PCs, releasing popular titles such as Microsoft Flight Simulator and the massively successful Age of Empires after the creation of DirectX, the application programming interface (API) that allowed for direct access of the computer hardware and bypassing Windows.[25] However, the company had not entered the home console market of video games, which was dominated at the time by Sony's PlayStation. Sony was working on its next video game console, the PlayStation 2 (PS2), announced officially to the public on March 2, 1999, and intended for the system to act as a gateway for all types of home entertainment. Sony presented a vision where the console would ultimately replace the desktop computer in the home.[26] Microsoft CEO Bill Gates saw the upcoming PS2 as a threat to Microsoft's line of Windows PCs, worrying that the all-encompassing system could eliminate consumer interests in PCs and drive them out of the market. With video games rapidly growing into a massive industry, Gates decided that Microsoft needed to venture into the console gaming market to compete with Sony. Previously, Sega had developed a version of Windows CE for its Dreamcast console to be used by game developers. Additionally, Gates had directly approached Sony CEO Nobuyuki Idei before the public announcement of the PS2 regarding letting Microsoft develop programming software for the console. However, the offer was declined by Idei in favor of having Sony create proprietary software.[27] Microsoft had also attempted to meet with Hiroshi Yamauchi and Genyo Takeda of Nintendo to potentially acquire the company, but Nintendo declined to go further.[26][28]

The 4 DirectX team members encountered disagreements with the Silicon Valley engineering team behind WebTV, which joined Microsoft after they purchased the rights to the device. Microsoft executive Craig Mundie wanted the project to be led by the WebTV team, who believed the console should be built from the ground-up as an appliance running off Windows CE; however, the DirectX team were adamant about the idea of repurposing PC hardware components, such as a hard disk drive, arguing that they were cheaply manufactured and could easily be updated every year. The 4 developers gained the support of Ed Fries, the head of Microsoft's gaming division, who believed the use of a hard drive, in particular, would give the console a technical edge among competitors despite its high manufacturing cost. The two opposing teams pitched their arguments to Gates on May 5, 1999, at a meeting attended by over twenty different people. WebTV's team, among whom were Nick Baker, Dave Riola, Steve Perlman, and Tim Bucher, and their sponsor, Craig Mundie, made the case that creating an appliance would be far cheaper, highlighting that most consoles were generally sold at around $300. They also wanted to use a custom-made graphics chip, which could be shared across several different home devices. Conversely, Fries, vouching for the DirectX team, argued that using a PC hard drive would set Microsoft's console apart from competitors by allowing for the direct implementation of online access, an argument which Gates sided with. When Gates questioned if PC games could be effectively ported to the new console, Blackley explained that the machine would utilize DirectX hardware, meaning that they could be converted easily. Gates heavily favored this proposition over WebTV's, whose concept relied on Windows CE, a heavily stripped-down Windows variant that was not compatible with DirectX. As such, Gates sided with the DirectX concept and gave Berkes' team permission to create a new video game console. Despite this, WebTV would still play a part in the Xbox's initial launch.[27][26]

Rick Thompson and Robert J. Bach were responsible for overseeing the Xbox's design. The DirectX team began constructing prototype consoles, purchasing several Dell computers and using their internal parts.[33] Initially, it envisioned that after designing the console, Microsoft would have worked with a third-party computer manufacturer to mass-produce the units. However, the early work showed that this would need to be something that Microsoft would have to produce themselves, making the prospect a far more costly operation; the name "Coffin Box" became associated with the project as there were fears the project would end careers at Microsoft.[26] Further, as a gaming console, they could not provide the direct Windows interface to users. While Thompson and Bach had warned Gates and Steve Ballmer about these large-scale changes from the initial proposal in late 1999, the matter came to a head at a February 14, 2000, meeting, informally referred to as the Valentine's Day Massacre, in which Gates furiously vented about the new cost proposal and massive changes in this console from what had been previously presented, since the Xbox appeared to marginalize Windows.[26] However, after being reminded that this was a product to compete against Sony, Gates and Ballmer gave the project the go-ahead along with the necessary marketing budget.[26] Another contentious point of design was the addition of Ethernet connectivity rather than simple support for dial-up networking. At this point, most consumer homes had access to Internet connectivity, but social networks had yet to be established which would later demonstrate the viability of this decision. The Xbox leads argued that with the planned Xbox Live functionality, the Ethernet port would help friends be able to play after they have graduated from schools and colleges and moved across the country.[26]

Throughout the console's prototyping, Microsoft was working with AMD for the CPU on the system. According to Blackley, just prior to the system's reveal in January 2001, the Microsoft engineers opted to switch to an Intel CPU, a fact that had not yet been communicated to AMD prior to the reveal.[34]

Among the names considered for the new console were a number of acronyms, including "Windows Entertainment Project" (WEP), "Microsoft Total Gaming" (MTG), "Microsoft Interactive Network Device" (MIND), and "Microsoft Interactive Center" (MIC).[35][36] Also among the names considered was "DirectX Box", referring to the system's reliance on Direct X. At one point, Hase jokingly came up with the names "XXX-Box" and "DirectXXX-Box" as a nod to the system's higher volume of adult content compared to Sony or Nintendo's consoles.[37] "DirectX Box" was quickly shortened to "Xbox" through an e-mail conversation, and was ultimately favored by the development team, though a number of spelling variants were tossed around, such as xBox, XboX, and X-box.[35][37] Microsoft's marketing department did not like this name, suggesting "11-X" or "Eleven-X" as alternatives.[35] During focus testing, the company put the name "Xbox" on the list of possible names simply to prove how unpopular the Xbox name would be with consumers. However, "Xbox" proved to be the more popular name on the list and was thus selected as the official name of the product.[38]

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