Was Microsoft’s Decision To Discontinue The Original Xbox A Mistake?

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According to journalist, Bruce Everiss of Seeking Alpha, Microsoft may have pulled their original Xbox console from stores too soon. In addition to the revenue they may have lost out on, he believes that the multi-industry giant could have benefited from Xbox sales in countries such India and China where lower income levels would seemingly favor the less expensive consoles.

Now imagine the benefits if they [had] kept the original Xbox alive. It would have given them market presence in the massive developing countries of China and India where lower incomes favor a cheaper machine. It would have brought millions of new people to Xbox live, helping to lock them into buying future generations of Microsoft consoles. And it would have made enormous profits from the continuing sale of the Xbox game back catalogue.

To me it looks like a very big mistake. Obviously Microsoft are not stupid and must have their reasons, but surely the potential upside of keeping it going would have made it worthwhile to work round any problems.

While this is one individuals opinion, he does manage to make some good points. What do you think?

Source: seekingalpha.com

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  • LordCancer

    as an avid xbox gamer infatically YES! I had my xbox 2 years before microsoft pulled the plugged and dropped support entirely in favor of faky hd low ball quality hardware and market place gimmick scams and the gem of anti-consumer corporate policy in dealing with hardware/software failures and drm marketplace content.

  • Jordan

    This was kind of an idiotic idea. I never owned an Xbox, but it was kind of frustrating to see Microsoft kill it, as I had an interest in buying one at one point, and may still. However, I believe Microsoft’s main point in doing this was to stop the impending wave of shovelware – which time and time again happens to all of our favorite consoles when they cede to a new generation.

  • Sean

    I definitely agree. I think keeping it around would have done a lot of good for Microsoft in the long run. Considering the Wii is not much more (if at all) graphically superior to the original Xbox, it would have had plenty of horsepower to keep it going without technology being a barrier. With a built in hard drive I don’t even think most developers had the chance to find out what the system was really capable of, as 50% of Xbox games were hand-me-downs from the Ps2. Truth be told a lot of Xbox games still hold their own against this current generation of games. Games like Splinter Cell: Chaos Theory stand out in my mind as some of the best examples of this. Thats a good point about Xbox Live as well, as they could have simply released updates on the original box to keep it “in the loop” so to speak, even allowing cross platform play between Xbox 360 owners and Xbox owners in some games. So all in all, mistake to pull the plug? I definitely think so.

  • Dave

    I think the main concern is the millions of new 360 consoles coming online with the Live network. Keeping all their ducks in a row across two different platforms while adding tons of new features with litterally MILLIONS of customers cant be an easy task… Plus the huge costs they are enduring with their um, “problems” on the 360… looks like some cost cutting/damage control measures to me. How much does cutting support ENTIRELY on the original xbox save them do you think? :)