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įour engineers from Microsoft's DirectX team-Kevin Bachus, Seamus Blackley, Ted Hase and DirectX team leader Otto Berkes, began to envision what a Microsoft console to compete against the PlayStation 2 would be like. Microsoft, whose business had been primarily in supporting the personal computer (PC) business with its Windows operating system, software, and games, saw the PlayStation 2 as a threat to the personal computer. When Sony Computer Entertainment first announced the PlayStation 2 in 1999, the company had positioned the console as a centerpiece for home entertainment, as it not only would play video games, but also could play audio CDs and video DVDs.