Hacking the Xbox: An Introduction to Reverse Engineering
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Another interesting aspect of Xbox hacking is the underground society
of hardware hackers following the Xbox. The people who hacked the
Xbox and the expertise they attained will be relevant long after the Xbox
has become a dusty yard sale piece. Hence, there is a conscious social
focus to this book. I have included profiles of a sampling of Xbox
hacking personalities. The hope is to inspire people, through role models,
to pick up a screwdriver and a soldering iron and to start hacking.
Instilling this sort of exploratory spirit in the younger generations will be
important in the long run for preserving the pool of talented engineers
that drove the technology revolution to where it is today. Many of
today’s engineers got their start hacking and tinkering with ham radios,
telephones and computers which, back in that day, shipped with a
complete set of schematics and source code. This pool of engineering
talent is essential for maintaining a healthy economy and for maintaining
strong national security in the computer age.
The Video Game Console Market
2002 was a year marked by turmoil, not only abroad, but also in the
technology marketplace; PC sales flattened, the server business shrank, and
the telecommunications market, with a few exceptions, looked dismal.
Despite the bear market for technology, the video game hardware, software
and accessories market had a landmark year, hitting a total dollar sales of
$10.3 billion — a 10% increase over 2001.
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This is comparable to the
recording industry’s sales of $13 billion in the US in 2001.
Even though the market for video games is large, running a profitable
console business is a daunting challenge. Video game customers are picky,
trendy, and frugal. They demand high-performance, sexy console hardware
at the price of a fancy family dinner or a visit to the doctor. This combina-
tion of frugality with an expectation for high performance game hardware
forces console vendors to sell their hardware at a loss. As a result, a “closed-
console” business strategy is used by console vendors: the console is sold as
a loss leader, and profits come from future sales of video game titles. This
business strategy requires a large amount of up-front investment in console
hardware and in advertising. It is the console manufacturer’s responsibility
to create a market for their hardware so that game developers feel comfort-
able investing their time and money in the platform.
The Catch-22 is that nobody wants to buy a console that has few game
titles. Thus, the risk of building and deploying millions of units of
hardware, and the hundreds of millions of dollars of up-front losses
taken on the hardware, is shouldered almost entirely by the console
manufacturer. As a result, there are currently only three players in the
game console business today: Sony, Nintendo, and Microsoft. Of these
three, Sony has a head-and-shoulders lead in the console market, while
Nintendo has cornered the handheld market with its Gameboy line of
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source: NPDFunworld
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