There was a third team from WebTV, that was based around the team that designed the 3DO M2. That team lost the original Xbox internal design contest, but went

There was a third team from WebTV, that was based around the team that designed the 3DO M2. That team lost the original Xbox internal design contest, but went on to design the 360 and later Xbox consoles. The Dreamcast WinCE project did contribute several engineers to the Xbox org. It mostly taught MS how the console game business worked, showed them where WinCE/Direct X needed to be improved to support consoles, and gave them a list of things not to do. Dreamcast’s controller and accessories were also quite influential on the original Xbox controller.