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Untamoi said:
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.

No one knows the exact reason why Microsoft entered into the home console market, but if you look at what Sony was claiming the PS2 would be in 1998 it could have been thought to be a major threat to the home PC market had they been successful ... Many of the features of the PS2 were dropped and it became the more focused gaming console we remember, but it is possible that Microsoft still saw an eventual risk from the market.