https://en.m.wikipedia.org/wiki/Embrace,_extend,_and_extinguish in 1998, Bill Gates stated: "One thing we have got to change in our strategy – allowing Office documents to be rendered very well by other people's browsers is one of the most destructive things we could do to the company. We have to stop putting any effort into this and make sure that Office documents very well depends on PROPRIETARY IE capabilities. Anything else is suicide for our platform. This is a case where Office has to avoid doing something to destory [sic] Windows."

Not just Gates, but all higher ups at Microsoft think this way. It's kind of naive to think Xbox would be different IMHO.