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First XBox was released in 2001 and Google Docs was released in 2007. Google was still a tiny company when MS entered console market and even concept of Web 2.0 didn't exist (it was created in 2004). So Web 2.0 had absolutely nothing to do with MS entering game console market. And Google Docs is still far behind MS Office. It still has only around 1% market share and even OpenOffice is still several times more popular than Google Docs.