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For the original xbox, it is a mix of things but above all it was money.

Money

  • They entered the market with a powerful console that was priced reasonably (unlike 3DO or Neogeo).
  • The marketing for the system was huge (unlike the apple Pippin for example).
  • They attracted western 3rd party support with attractive money-hatting proposals (unlike Nintendo's cube).
  • They took measures to pierce into the japanese market no matter how hard that was. (Mystwalker and others)

360

  • They were able to do loss-leading and sustain the console until profitability (unlike dreamcast).



Other

  • It was familiar to PC devs and easy to port games between it and the PC: directX technology (unlike say the Saturn).
  • A good online infrastructure early on. (This also involves money, but is strategy)
  • They secured key exclusives like Halo and DoA (this also involves money, but is strategy)
  • Tighter management. Better business decision-making.
360
  • They had moderate success in cutting into Nintendo's casual market.
  • Good branding with the 360.
  • Controller and console design aesthetics/ergonomics issues with the original xbox were fixed. Best trad controller in the industry.
  • They re-launched the console with a redesign and a major peripheral upgrade (kinect).