The Xbox was initially developed internally by a small Microsoft team, including game developer Seamus Blackley, Kevin Bachus, Otto Berkes and Ted Hase.
Microsoft has repeatedly delayed the design of the console, which was revealed at the end of 1999 following interviews of the director of Microsoft himself, Bill Gates. He said a multimedia device was essential for multimedia convergence in modern times of digital entertainment.
On March 10, 2000, the “X-box Project” was officially confirmed by Microsoft in a press release. In January 2001, the console is unveiled at the E3 by Bill Gates.
According to the book Smart bomb Heather Chaplin and Aaron Ruby, the remarkable success of the Sony PlayStation worried Microsoft would, in the late 1990s.
The growing market of video games seemed to disrupt the PC market, Microsoft dominated, and which was based on the majority of its revenues. An entry in the world of video games diversified product line Microsoft, which had previously focused only on software.