The guys at Digital Trends are arguing that MS should never have built the Xbox. And it all comes down to opportunity cost. Essentially, they feel that MS has sacraficed the billion dollar PC market to try and 'assure' success of a product that makes millions in the Xbox.
<blockquote>There is no argument that the Xbox 360 is a sound game system, and it isnâ€™t uncommon for a company struggling with its primary product to broaden their product portfolio and look to other areas for growth. The problem is that the opportunity cost is generally greater than the benefit, and that is the case here. As PRJ points out, PC gaming isnâ€™t what it should be, but that was a cost of doing the Xbox 360, so Microsoft effectively sacrificed a product that generates billions to assure the success of a product that makes millions.
The ultimate cost to Microsoft to produce the Xbox platform was a weakened PC ecosystem, a stronger and more profitable rival in Apple, and an overall poor computer gaming experience. Bottom line: The cost of the Xbox significantly exceeded its benefit.</blockquote>
News Source: <A href="http://www.digitaltrends.com/gaming/microsoft-should-never-have-built-the-xbox/2/" target="_Blank">DigitalTrends</a>