Xbox is a video gaming brand created and owned by Microsoft. The brand consists of five video game consoles, as well as applications (games), streaming service Xbox Cloud Gaming, online services such as the Xbox network and Xbox Game Pass, and the development arm Xbox Game Studios. The brand was first introduced in the United States in November 2001, with the launch of the original Xbox console.
The original device was the first video game console offered by an American company after the Atari Jaguar stopped sales in 1996. It reached over 24 million units sold by May 2006. Microsoft's second console, the Xbox 360, was released in 2005 and has sold 86 million units as of October 2021. The third console, the Xbox One, was released in November 2013 and has sold 58 million units. The fourth line of Xbox consoles, the Xbox Series X and Series S, were released in November 2020. The head of Xbox is Phil Spencer, who succeeded former head Marc Whitten in late March 2014.
When Sony Computer Entertainment first announced the PlayStation 2 in 1999, the company had positioned the console as a centerpiece for home entertainment, as it not only would play video games, but also could play audio CDs and video DVDs. Microsoft, whose business had been primarily in supporting the personal computer (PC) business with its Windows operating system, software, and games, saw the PlayStation 2 as a threat to the personal computer.
Four engineers from Microsoft's DirectX team—Kevin Bachus, Seamus Blackley, Ted Hase and DirectX team leader Otto Berkes, began to envision what a Microsoft console to compete against the PlayStation 2 would be like. They designed a system that would use many hardware components in common with PCs, effectively running a version of Windows and DirectX to power the games on the console. This approach would make it easy for developers on Windows to build games for their new system, differentiating itself from the custom hardware solutions of most consoles. Numerous names were suggested for this console, including "Direct X Box", and the "Windows Entertainment Project".