The original Xbox launched in the United States at a price of $299.
Microsoft positioned the console as a powerful machine for the sixth generation of video games. Its hardware included a custom Intel Pentium III-based processor, an Nvidia graphics processor, a built-in hard disk, and an Ethernet port. Those features contributed to the system's relatively substantial launch footprint and price.
The $299 figure applied to the North American launch in November 2001. Microsoft later reduced the price as competition changed and manufacturing costs fell. A notable early price cut brought the console to $199 in 2002, improving its position against competing systems.
The launch price is sometimes confused with the Xbox 360 Premium model's 2005 price. That was a different console and a different product tier. The original Xbox also differed from many contemporaries by including a hard disk as standard rather than requiring a memory card for ordinary game saves.