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This doesn't sound like a true story. He lies to Bill Gates 'telling him the console would incorporate the Windows operating system' but also had 'been telling them that [this doesn't need Windows at all] for two years.'

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Someone gave a talk at my college early after the release of the original Xbox. It was definitely "Based" off of Windows 2000. So like I would call this a white-lie. Basically just the kernel and file system if I remember correctly.

Kinda like how ios version 1 was based off OSX.

iOS was based off NextStep, just like OSX.

Could you elaborate? I'd say any connection iOS has with NextStep is through OS X. What connection does iOS have to NextStep that is independent of OS X parentage?

I was being sarcastic, iOS is clearly based on MacOS/OSX, which was derived from NextStep. OP was implying that was a myth.

Still with a BSD derived kernel? I can't see why you'd need to make them that different; massive costs savings if you don't.

The full article they link to clears this up. Indeed it's Windows 2000, but it's not "PC Compatible" which was the issue.

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