Phil Spencer was hoping to capitalise on a more casual part of the PC gaming market and he failed, because for them it's still becoming a, **ahem**, and I quote!!, "a console peasant". The console was bought and loved by anyone that has amassed a large digital library on their Xbox account.
Credit where credit is due, the series X was an amazing machine that was very very powerful for its price point during release, no way they weren't selling at a huge loss and expecting it to sell like hotcakes based on it's capabilities alone, the price point currently is to try to make something back, although it is too late. No hype and gathering dust on shelves. Too expensive now to work as solely a 4k blu ray player either, so it can't be recommended for that.
I personally believe Xbox lost when they didn't part Jet set radio future to the Xbox backwards compatibility. Jet set radio future was all the xbox really needed in my eyes, that and a decent Halo game, it got neither in years.
The emulation scene for the OG Xbox is abysmal as an example, The Xbox brand is dying and is currently just a testing ground for a video games version of netflix, streaming sites more or less so we can return to renting games and not owning shit, not even a license to download a working signed copy of a game.
The OG xbox only exists because Bill gates was insecure about the Japanese dominance of the gaming market. The xbox 360 was a mad dash to get the next gen of console first to market at a 80% failure rate for the initial machine.
All round Xbox situated itself as being the cheap gaming machine after initially being the premium console machine.