What i find hilarious is how many people are surprised by this. This was so obvious even before the original Xbox. Xbox wasnt about games - it never, ever, ever was - and MS was very clear about that.
In the early 2000's, MS investors were pissed at Microsoft because at the stagnation of the company's stock. Microsoft, essentially having a monopoly on one sector, can't really grow further. They needed to branch out into new markets. in an attempt to please investors, and promote further growth, Microsoft purposely went into new markets. Out came Zune and Xbox for consumers, and afew other less well known products for businesses and developers.
The Xbox's goals weren't about making a new gaming console to please gamers - it was to fix an image problem that Microsoft had. Whenever you thought of microsoft you immediately thought of Windows. MS felt they needed to get their name associated with something more than that, or they would be doomed as a company.
Microsoft wanted to be in your living room (or in your pocket with Zune) so as to think of Microsoft as a different company. They also didnt care much for the cost as long as the produect was popular. Even if their gaming division was doing horrible in sales, they would continue as long as it remained relevent.
This is exactly in-line with the direction that Microsoft has always wanted. Why is ANYONE surprised?
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