It was off putting to many Americans also. They pitched an overpriced box as the best way to watch overpriced cable channels while playing overpriced annual updates to SPORTZ games.
In the late 2000s Microsoft tried forcing GFWL, which failed spectacularly and ruined a whole ton of great games, some of which are STILL broken.
Then they ignored PC gaming until 2017 when they started porting Xbox games to PC, buuuuuut they still sorta ignored it by neglecting their Xbox app for YEARS. Meanwhile, Steam has been quietly making PC the best place to play games and now Microsoft wants to come in like the Kool Aid Man... lol