Xbox (console): History and Key Facts

The Xbox is a home video game console developed and marketed by Microsoft. It was released on November 15, 2001, in North America, followed by Australia, Europe, and Japan in 2002. It was the first major American-produced console since the Atari Jaguar in 1993, and as a sixth-generation console, competed with Sony's PlayStation 2 and Nintendo's GameCube.

Microsoft began developing the Xbox in response to the impending launch of the PlayStation 2, which Microsoft CEO Bill Gates saw as threatening the Windows PC business due to its support for CD-ROM and DVD playback. Whereas most previous game consoles used specially designed hardware, the Xbox was built around standard PC components. Its hardware includes an Intel Pentium III CPU and an Nvidia GeForce 3-based GPU, while the software uses variations of Windows 2000 and DirectX. The Xbox was the first console to feature a built-in hard disk. The Xbox supports broadband connectivity to the internet via an integrated Ethernet port; Microsoft launched Xbox Live, a fee-based online gaming service, in 2002.

The Xbox had a record-breaking launch in North America; aided by the popularity of the launch game Halo: Combat Evolved, Microsoft sold 1.5 million Xboxes before the end of 2001. Cumulative sales reached 24 million, including 16 million in North America. However, Microsoft lost over $4 billion on the Xbox, unable to make a steady profit due to the manufacturing price being far more expensive than its retail price. The Xbox outsold the GameCube and Sega's Dreamcast, but was vastly outsold by the PlayStation 2. It underperformed outside of the Western market; particularly, it sold poorly in Japan due to its large size and an overabundance of games marketed towards American audiences.

Microsoft discontinued the Xbox in 2006, and closed its online services in 2010. The Xbox was the first in the Xbox line of consoles, followed by the Xbox 360 in 2005, the Xbox One in 2013, and the Xbox Series X/S in 2020. All subsequent Xbox consoles are backward compatible with select original Xbox games. The popularity of the Xbox's blockbuster games, such as Halo 2 (2004), contributed to the popularity of first-person shooters and online console gaming.

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