The XBox's first mission was to produce market penetration so the XBox 360 could make a profit. They never planned to make a profit off of the original XBox, and expected to make money off of its successor.
The XBox's second mission was to destabilize Sony from taking over the living room. To do that, they needed to release the successor early so they could grab hardcore gamers with AWESOME GRAPHIX! So they cut the XBox's life short and released its successor a year early.
Microsoft knew exactly what it was doing.
There is no such thing as a console war. This is the first step to game design.







