In an interview to GamesIndustry.biz, Xbox co-creator Seamus Blackley spoke about lots of interesting ideas Microsoft had during the development of original Xbox. Microsoft considered giving away Xbox for free and later make them run Windows for monetization.
“In the early days of Xbox, especially before we had figured out how to get greenlit for the project as a pure game console, everybody and their brother who saw the new project starting tried to come in and say it should be free, say it should be forced to run Windows after some period of time.”
They even considered buying Nintendo and they thought casual games like Mario will be the core games for their console.
“Just name it, name a bad idea and it was something we had to deal with.”
Read the full interview from the link below.