Microsoft has been recently working to leverage the branding of "Xbox" beyond the console hardware but as a general video game brand, reflected in the renaming of Microsoft Studios to Xbox Game Studios in 2019.[12][13] Phil Spencer stated in June 2019 that for Microsoft, "The business isn't how many consoles you sell. The business is how many players are playing the games that they buy, how they play." which journalists have taken as a route to de-emphasize console hardware and prioritize games, subscriptions and services for players.[14][15] Later in February 2020, Spencer said that moving forward, the company does not see "traditional gaming companies" like Nintendo and Sony as their competitors but instead those that offer cloud computing services such as Amazon and Google. Spencer identified that Microsoft Azure is a major component of their plans going forward, which powers its xCloud game streaming service.[16] Spencer also cited mobile gaming as a potential area, and where Microsoft was trying to position itself with its services should this become the more preferred form for gaming. Spencer said "I don't think it's "hardware agnostic" as much as it's 'where you want to play'", in describing how Microsoft was strategizing the Xbox branding for the future.[17]
Consoles
First generation: Xbox
The original Xbox was released on November 15, 2001, in North America, February 22, 2002, in Japan, and March 14, 2002, in Australia and Europe. It was Microsoft's first foray into the gaming console market. As part of the sixth generation of video game consoles, the Xbox competed with Sony's PlayStation 2, Sega's Dreamcast (which stopped American sales before the Xbox went on sale), and Nintendo's GameCube. The Xbox was the first console offered by an American company after the Atari Jaguar stopped sales in 1996. The name Xbox was derived from a contraction of DirectX Box, a reference to Microsoft's graphics API, DirectX.[18][19]
The integrated Xbox Live service launched in November 2002 allowed players to play games online with a broadband connection.[20] It first competed with Dreamcast's online service but later primarily competed with PlayStation 2's online service. Although the two competing services were free, while Xbox Live required a subscription - as well as broadband-only connection, which was not completely adopted yet - Xbox Live was a success due to it having better servers, features such as a buddy list, and milestone titles such as Halo 2 (released in November 2004), which became the best-selling Xbox video game and was by far the most popular online game for the original Xbox system.
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