Microsoft Xbox
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The Microsoft Xbox is a sixth generation era video game console first released on November 15, 2001 in North America, then released on February 22, 2002 in Japan, and on March 14, 2002 in Europe. The Xbox was Microsoft's first independent venture into the video game console arena, after having developed the operating system and development tools for the MSX, and having collaborated with Sega in porting Windows CE to the Sega Dreamcast console. Notable launch titles for the console include Halo: Combat Evolved, Amped, Dead or Alive 3 and Oddworld: Munch's Oddysee.

Development
The Xbox was initially developed within Microsoft by a small team which included Seamus Blackley, a game developer and high energy physicist. The rumors of a video game console being developed by Microsoft first emerged at the end of 1999 following interviews of Bill Gates. Gates said that a gaming/multimedia device was essential for multimedia convergence in the new times of digital entertainment. On March 10, 2000 the "X-box Project" was officially confirmed by Microsoft with a press release.

Some see the Xbox as a way to capitalize on the growing video game market, noting that the PC market growth was stagnating after the dot-com bust. According to the book Smartbomb, by Heather Chaplin and Aaron Ruby, the remarkable success of the upstart Sony PlayStation worried Microsoft in late 1990s. The growing video game market seemed to threaten the PC market which Microsoft had dominated and relied upon for most of its revenues. As well, a venture into the gaming console market would also diversify Microsoft's product line, which up to that time had been heavily concentrated into software.

Xbox presented a standardized alternative to the near-endless variety of end-user configurations on the PC. The Xbox even brought high-end gaming technology to the mainstream, sporting a top of the line GeForce 3 equivalent graphics processor, a built-in Ethernet adapter, and Dolby Digital 5.1 sound in hardware.

One of the complaints about the Xbox is that people do not like the cost of using the online service, Xbox Live. They argue that other companies offer similar programs that are cheaper or for free.

The Xbox launched in North America on November 15, 2001. The greatest success of the Xbox's launch games was Halo: Combat Evolved, which was critically well-received and one of the best-selling games of the year. Halo still remains the console's standout title. Other successful launch titles included NFL Fever 2002, Project Gotham Racing and Dead or Alive 3). However, the failure of several first-party games (including Fuzion Frenzy and Azurik: Rise of Perathia) damaged the initial public reputation of the Xbox.

Although it enjoyed strong third-party support from its inception, many early Xbox games did not take full advantage of its powerful hardware, with few additional features or graphical improvements to distinguish themselves from the PS2 version, and this negated one of the Xbox's main selling points. Lastly, Sony countered the Xbox by securing PlayStation 2 exclusives for highly anticipated games such as the Grand Theft Auto series and Metal Gear Solid 2: Sons of Liberty.

In 2002 and 2003, several releases helped the Xbox to gain momentum and distinguish itself from the PS2. The Xbox Live online service was launched alongside pilot titles MotoGP, MechAssault and Tom Clancy's Ghost Recon. Several best-selling and critically-acclaimed titles for the Xbox were published, such as Tom Clancy's Splinter Cell, Ninja Gaiden, and Star Wars: Knights of the Old Republic. Take-Two Interactive's exclusivity deal with Sony was amended to allow Grand Theft Auto III, Grand Theft Auto: Vice City and its sequels to be published on the Xbox. In addition, many other publishers got into the trend of releasing the Xbox version alongside the PS2 version, instead of delaying it for months.

In 2004, Halo 2 set records as highest grossing release in entertainment history as well as being a successful killer app for the online service. That year, Microsoft and Electronic Arts reached a deal which would see the latter's popular titles enabled on Xbox Live. In 2005, the long-awaited Xbox console-exclusive Doom 3, Half-Life 2, and Far Cry Instincts were released. Games that sell over 400,000 units in their first 9 months are designated as Platinum Hits and have their retail prices dropped.

Xbox Live
On November 15 2002 Microsoft released the Xbox Live online gaming service, allowing subscribers to play online Xbox games with (or against) other subscribers all around the world and download new content for their games to the hard drive. This online service works exclusively with broadband. 250,000 subscribers had signed on in 2 months since Live was launched. In July 2004, Microsoft announced that Xbox Live reached 1 million subscribers, and announced in July 2005 that Live had reached 2 million. An Xbox Live Subscription currently costs $50 a year [which is roughly $4 a month].

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