Xbox, video game console system created by the American company Microsoft. The Xbox, Microsoft’s first entry into the world of console electronic gaming, was released in 2001, which placed it in direct competition with Sony’s PlayStation 2 and Nintendo’s GameCube.
Xbox offer superior technological features, but it initially lacked some of the software licensing benefits available to rivals Nintendo and Sony. Xbox Live, the Xbox’s online gaming network, debuted in 2002 and allowed players to compete against one another over the Internet. More than two million players subscribed to Xbox Live, establishing it as one of the Xbox’s greatest successes. Many people exploited security flaws in the Xbox to modify the system so that pirated copies of games could be played on the console, a process that was popular despite the fact that such alterations voided the warranty.