Bruce Everiss of Seeking Alpha believes that Microsoft's move to kill of the original Xbox was a big mistake. Everiss believes that if MS would've kept it alive, then it would've given them a bigger market presence in developing countries such as China and India where lower incomes favor a cheap machine. And he believes that they would have made enormous profits from the sale of Xbox game back catalogue.

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Now imagine the benefits if they has kept the original Xbox alive. It would have given them market presence in the massive developing countries of China and India were lower incomes favor a cheaper machine. It would have brought millions of new people to Xbox live, helping to lock them into buying future generations of Microsoft consoles. And it would have made enormous profits from the continuing sale of the Xbox game back catalogue.

To me it looks like a very big mistake. Obviously Microsoft are not stupid and must have their reasons, but surely the potential upside of keeping it going would have made it worthwhile to work round any problems.