Article: Outsourcing the Xbox: when Microsoft decided to get into the video game business, it turned to Flextronics to build its state of the art video game console. (Consumer Electronics).

No one besides Bill Gates really knows why Microsoft decided to get into the video game system business. After all, the entire video game console market is only about $5.7 billion. Microsoft alone had $25 billion in revenue in its last fiscal year.

Some analysts say Microsoft has bigger plans for the Xbox, which is why the system is equipped with a hard disk drive and an ethernet adapter card unlike other video game systems. Xbox can or has the potential to play DVDs, download digital movies and music, or serve as an Internet access device or personal video recorder.

Whatever the reason software giant Microsoft decided to get into the video game hardware ...

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