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

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











