Chapter 3.6

Microsoft Xbox (2001)

History

When Microsoft first announced its plans to enter the console market at the Game Developers Conference in 2000, many people thought the company had lost its way. There were three good reasons to doubt that even the richest company in the world could bully its way into the console market: Microsoft’s reputation as a business-oriented company, Japan’s undisputed dominance of the console industry, and a long-standing prejudice by many console fans against PCs.

First of all, while Microsoft always dabbled in games publishing, they were primarily known as a serious, business-centric corporation, making the bulk of its money from operating systems and productivity software. In 1996, their much hipper rival ...

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