When Sony announced the PS 2 In March, 1999, Microsoft had no presence in consoles, and only a small piece in the game business with niche titles for PCs like Microsoft Flight Simulator. The long standing vision of Bill Gates: a PC on every desk’ was near, but Microsoft had no presence in the living rooms. Sony had 47 percent of the game console market with PlayStation and had left erstwhile leaders, Sega and Nintendo, behind.
This was to change as announced on September 20, 2000. J. Allard, then general manager of Xbox, and John O’Rourke, director of Xbox marketing, unveiled the logo for the upcoming game console at a news conference in San Francisco.
November 14, 2001 was a special night. Bill Gates and his men were at the New York’s Times Square waiting for the midnight for the official launch. The excitement was mixed with fear. It wasn’t a software program this time. Shortly after midnight, Bill Gates handed over the first Xbox video game system ever to Edward Glucksman at the Toys “R” Us store.
Microsoft sold 1.5 million Xbox units in the US between the launch and the end of calendar year 2001, making Xbox the best-selling video game console launch. On March 14, 2002, several midnight events throughout Europe marked the launch of Xbox in 16 European countries and Australia. Microsoft’s second console, the Xbox 360, and the associated game business rake in more than $1 billion in profits every year now.
Microsoft introduced Xbox LIVE in November 2002 and sold 150,000 Xbox LIVE Starter Kits in the service’s first week. Xbox LIVE currently has 35 million members worldwide who spend 2.1 billion hours a month on the service. It is one of the earliest successes in the social market, and also made online console gaming a reality.
June 14, 2010 marked the Microsoft’s next bet in the gaming and entertainment business. However, this time it wasn’t a business diversification, but a technological progression. Microsoft demonstrated a controller-free experience that allows players to jump, dodge and kick their way through exciting adventures, at E3 2010 in Los Angeles. It was called Project Natal.
The night of November 3, 2010 was different than the one 9 years ago. Bill Gates wasn’t there at the Times Square. The square, however, was draped in purple and Microsoft hosted a dance party with thousands to celebrate the launch of Project Natal, now branded as Kinect for Xbox 360. The crowd lined up to be among the first to buy Kinect at midnight at the Toys “R” Us store in Times Square. Kinect for Xbox 360 set a Guinness World Record as the fastest-selling consumer electronic device, selling 8 million units in 60 days.