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Xbox 360 Was Influenced By Fear Of Sony Dominating The Living Room, Says Former Boss

Xbox 360 Was Influenced By Fear Of Sony Dominating The Living Room, Says Former Boss

By on November 19, 2025 0 7 Views

“What can we design that appears appealing beside the television?”

Image: Power On: The Story of Xbox | Chapter 5: The Red Ring of Death (Microsoft)

Amid all the ongoing festivities for the Xbox 360 reaching two decades later this week, Eurogamer has engaged with former Xbox leader Peter Moore regarding his journey at Microsoft and his encounters with the Xbox 360.

Perhaps the most captivating aspect in “Part 1” of the interview centers around how Microsoft had apprehensions about Sony potentially dominating the living room in the early 2000s, which considerably influenced the development of the Xbox 360.

Moore shared during the discussion that after conversing with Microsoft’s Steve Ballmer in January 2003 about joining the organization, it became evident that Sony’s supremacy in areas like televisions, Blu-ray players, music devices, and other entertainment technologies was a concern to be addressed with the Xbox 360.

“The initial Xbox was still in circulation. It was a sort of ‘warning shot’ type console – not a fully developed ‘let’s dive in, let’s pursue it’ [device], because it wasn’t aligned with the future’s direction. But to summarize, Microsoft needed to penetrate the living room.

Microsoft, and specifically Bill [Gates], with whom I had the honor of spending meaningful time, was anxious that Sony was going to dominate the living room. It seems somewhat foolish now but back then, televisions, Blu-ray players on the horizon, music devices… Sony was firmly positioned as an entertainment corporation and a hub in the living room. And the worry for Bill and the core executive team at Microsoft was that the company would simply be confined to the desktop and office space, being labeled a productivity firm.”

He continued to elaborate how the Xbox 360 needed to be a “comprehensive platform” capable of serving as an “entertainment hub” alongside being a gaming console, emphasizing that it couldn’t seem out of place in the living room.

“One of the essential factors was that we had to construct something that was more than just a hardware unit where you inserted a disc and played games. Gamers were crucial at the time, and perhaps still are, but we were crafting an entertainment hub. There’s no denying it. So the industrial design had to resonate with sleekness and fit within the living room. A stylish entertainment apparatus rather than a hardcore gaming console.”

“It had to be elegant. Interestingly, it needed to be adaptable both vertically and horizontally, and it also needed to blend seamlessly with any other consumer electronic device in the living room, placed beside the television.”

Ultimately, everything turned out wonderfully for Microsoft and Peter Moore as the Xbox 360 became a monumental success, and he highlighted how launching significantly ahead of the PS3 was also crucial to that success.

Reflecting on those “living room” remarks, it’s fascinating how Microsoft appeared so dedicated to developing an entertainment hub with the Xbox 360 that was generally well-received at the time, while the Xbox One attempted a similar approach but was too overt in its entertainment-centric unveiling.

Intriguing insights! We’ll provide more Xbox 360 material here at Pure Xbox throughout the week, and be sure to check out some of our new features – like a retrospective on PGR3, as well as elements we miss about the Xbox 360 in 2025.

What are your thoughts on Peter Moore’s remarks here? Share with us below.

[source eurogamer.net]

Fraser serves as the News Editor at Pure Xbox, where he dedicates his time reporting on the most significant stories in the realm of Xbox and beyond.

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