![]() ![]() In fact, the hardware was basically a mini-360: it supported DirectX 8.1, just a couple of steps behind DirectX 9c, the maximum the "HD" consoles support, as well as a hard drive for streaming data. However the system was the most powerful Sixth Generation console, and its architecture was ahead of its time as it was the first mainstream note the x86-based FM Towns Marty and Tandy VIS, both commercial failures, beat the Xbox to the market in that regard a decade earlier home console to be based on the now-industry standard x86 architecture it used an Intel Coppermine (Celeron-derivative) CPU clocked at approximately 733 MHz, and an nVidia NV2A Graphics Processing Unit (closest to, but not quite, the GeForce 3/NV30), making it far superior to its rivals. ![]() This meant Microsoft never actually made a profit on a single unit of the hardware itself - they lost $4 billion from it. While selling hardware for a loss isn't uncommon for video game consoles, the Xbox relied on an unusually large number of bespoke components bought from manufacturers at prices that were fixed by contract, so it was difficult to cut costs down the line. One of the reasons for Microsoft's rather aggressive use of Revenue-Enhancing Devices was because the system had very high manufacturing costs. They also charged extra for the DVD remote/IR sensor kit which was required to play DVDs (a free feature on the PlayStation 2 if you didn't want the remote, though this is because of the DVD's licensing fees the Nintendo GameCube and Dreamcast both lacked DVD playback due to their differing formats), and even with the kit could only play discs locked to the same region as the Xbox. While the Dreamcast and Sony's PlayStation 2 had Internet-based multiplayer and online features as an option, Microsoft made it part of the console's core identity and charged for it. Online connectivity was the console's key feature. It competed primarily with the PlayStation 2 and Nintendo GameCube as part of the The Sixth Generation of Console Video Games note The aforementioned Dreamcast had been discontinued in January 2001, several months before either the Xbox or GameCube released. ![]() After dipping their toe in the water by helping Sega with the Dreamcast note Some even consider the Xbox to be a Spiritual Successor to the Dreamcast the Xbox controller took heavy design cues from the Dreamcast controller, many sequels to Dreamcast games came out for the Xbox, and backward compatibility with Dreamcast games was even discussed, but negotiations with Sega fell apart over which online service to use, Microsoft went on to release a console of their own in 2001, which they named the "Xbox" note That's one word, no hyphens or CamelCase. Microsoft decided that in order for their investments in gaming to truly pay off, they had to get involved with the console market. In spite of these efforts, which led to several acclaimed PC titles released during the decade, it was Sony Interactive Entertainment (then Sony Computer Entertainment) who became the runaway success of the gaming world during this time, with the original PlayStation selling over 100 million consoles worldwide, while overall sales of PC games declined. During The '90s, Microsoft invested heavily in gaming on the PC, introducing the DirectX Application Programming Interface that finally prompted PC game developers to move from DOS to Microsoft Windows, and even published and developed numerous games themselves such as their Age of Empires series.
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