The original Xbox launched in North America in 2001 at a price of $299. Microsoft released the console on November 15, 2001, entering a market dominated by Sony's PlayStation 2 and Nintendo's GameCube.
The $299 price was significant because it positioned the Xbox as a premium home console with built-in broadband networking, a hard disk drive, and the powerful Xbox Live service planned for the following year. The console's launch lineup included Halo: Combat Evolved, which helped establish Microsoft's gaming brand.
The original Xbox was later reduced in price as competition intensified. Its launch price should not be confused with the Xbox 360's North American launch prices, which varied by model. The Xbox also launched at different prices in other regions, so $299 specifically describes the North American launch price.