Former Microsoft exec says the first Xbox was killed early in favor of 360 because it was “losing money left right and center,” but luckily “we could afford to hemorrhage cash” | Gaming

The original Xbox console was short-lived compared to a typical console generation, and now we have the very simple reason why: it was a financial disaster for Microsoft.

It’s fairly common knowledge that Microsoft lost more than $4 billion dollars on the OG Xbox, and it’s probably also pretty common to infer that that’s the reason it was killed ahead of schedule to make room for the Xbox 360, but now we know that to be explicitly true thanks to the guy who was in charge of Xbox at the time.

Former Xbox boss Peter Moore appeared on the Gamertag Radio podcast (timestamped here) and at one point was asked why Xbox decided to end its first console early.

“We were losing money right left and center on the original Xbox,” said Moore. “When your install base and your attach rate to the install base are so out of sync… We knew where we were going with high definition, with broadband in…more

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