It’s the year 2000. Sony’s PlayStation 2 is ready to conquer the game business and leave its Japanese rivals Sega and Nintendo looking like has-beens. But Sony’s gaming success is causing alarm at Microsoft’s headquarters. Microsoft co-founder Bill Gates fears Sony will use the PlayStation to conquer computer-based home entertainment and shut Windows out of the home. So he’s striking back by deploying Microsoft’s billions to create a Windows-based game console called the Xbox. But the team he’s assigned to the job are about to reject his plan. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

It’s 2007 and both the Xbox 360 and PlayStation 3 are in trouble. Microsoft’s dealing with an epidemic of dying consoles. Sony lacks sales momentum. And Nintendo’s surging back with the Wii – a console that lets people play using a motion-tracking controller. But when Microsoft hits paydirt with its own motion-controller – the Kinect – it will change the direction for Xbox and give Sony an opportunity for a comeback. Listen to Business Wars on the Wondery App or wherever you get your podcasts. Experience all episodes ad-free and be the first to binge the newest season. Unlock exclusive early access by joining Wondery+ in the Wondery App or on Apple Podcasts. Start your free trial today by visiting wondery.com/links/business-wars/ now. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.