Your position appears to be one of tactical and not of strategic thinking. Per the article, Xbox itself wasn't itself intended to be a large revenue stream. I

Your position appears to be one of tactical and not of strategic thinking. Per the article, Xbox itself wasn't itself intended to be a large revenue stream. It was (again, per the article) intended to protect other existing revenue streams of Microsoft from a competitor (Sony) that had been enjoying increasing success with gaming products, and a competitor that was then likely to use that success and that revenue to start competing against Microsoft in other arenas and other products. And yes, Xbox does look to have been a wise move. There have been more than a few comments over the years of companies having used press releases and roadmaps and deliberate leaks to freeze a market; to effectively remove the wind from a potential competitor's sails. Steps taken to change the business environment that the competitor is operating in. BTW: the difference between tactics and strategy is analogous to the differences between sales and marketing. Confuse the two at your corporate peril.