Velocity Vector
When Microsoft decided to enter the video game console business, many were skeptical. Microsoft wasn't known for its hardware, and Sony had established a firm foothold in the console business. Yet here we are, with the XBox console selling well, and its installed base getting closer to the size of the PS2's every day. You can't fight city hall, and you can't fight Microsoft.
Microsoft did reputedly attempt to buy Nintendo prior to the release of the XBox, but failed to reach an agreement on a buyout. Like most other large companies, though, they developed a contingency plan at the same time. The XBox console was under development, and when talks fell through, Microsoft brought the XBox to market. The Nintendo game library and other intellectual properties would have helped quite a bit, but Microsoft has done pretty well with their back-up plan (in the form of the XBox).
The XBox 360 was released in the fall of 2005. This gave the XBox 360 a substantial head start over the PlayStation 3 and Nintendo Wii. The PS3 and XBox 360 will have similarly powerful hardware, with the Nintendo Wii being a less powerful system sold (more comparable to the GameCube) at a cheaper price. The PS3 is also far more expensive than the XBox 360, giving Microsoft another weapon to use against Sony.
Interesting differences from the original XBox include:
Hardware is probably the XBox's greatest strength. It has more RAM, a faster CPU, and more capable 3D graphics chips than either of its major competitors. Of course, this means that it's more expensive than the GameCube, but Microsoft has still been able to match prices with Sony's PlayStation 2. The power of the Microsoft XBox allows for superior games (at least, superior in their technical aspects like graphical quality) and turns some games into automatic exclusives, like Doom 3 and Half-Life 2.
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