In a recent IGN podcast with Xbox creator Seamus Blackley, Xbox head Phil Spencer, and former Vice President of Microsoft’s Entertainment Division Peter Moore, they said that they did not consider Nintendo to be a major competitor during the seventh gaming generation because of Nintendo’s failure with the GameCube. They only perceived Sony as a threat.
We completely discounted Nintendo. Because they came off the GameCube and it was a disaster.
Phil Spencer, however, quickly confirmed that Nintendo “destroyed both of us!” As of December 2014, Nintendo Wii has sold over 101 million units worldwide. PS3 and Xbox 360 has sales upwards of 80 million each.