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 previous games consoles used specially designed hardware, the Xbox was built around standard PC components. It uses variations of Microsoft Windows and DirectX as its operating system to support games and media playback, and is powered by a IntelPentium III CPU and an NvidiaGeForce 3-based GPU.[9] The Xbox was the first console to feature a built-in hard disk.[13][14] The console was designed to support broadband connectivity to the Internet via an integrated Ethernet port and Xbox Live, a fee-based online gaming service that launched in 2002.[15] The popularity of the system's blockbuster titles such as Bungie's Halo 2 (2004) contributed to the popularity of first-person shooters and online console gaming.[16]
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, losing over $4 billion during its market life.[17][18][19][20][21] The system outsold the GameCube and the Dreamcast, but was vastly outsold by the PlayStation 2.[22] 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.[23] Production of the system was discontinued in 2005.[6][7] The Xbox was the first in an ongoing brand of video game consoles developed by Microsoft, and it was followed by the Xbox 360 in 2005, the Xbox One in 2013, and the Xbox Series X/S consoles in 2020.
^O'Brien, Jeffrey M. (November 2011). "The Making of the Xbox". Wired. Condé Nast. Archived from the original on November 4, 2012. Retrieved April 17, 2013.
^ abGarratt, Patrick (August 5, 2011). "The Xbox Story, Part 1: The Birth of a Console". vg247.com. Archived from the original on June 11, 2013. Retrieved June 26, 2013. Discontinued in Japan in 2005 and the following year in the rest of the world.