X-Box is a good gaming system, but that's all relative. Out of GameCube, PS2, and X-Box; in almost every regard, X-Box loses. I won't mention PCs as a gaming platform because that just wouldn't be fair and the price tag difference is probably around 1300%.
X-Box does have a few hits, Halo for example. How Halo became a hit is anyone's guess.
It also has the best graphics from a console at the moment -- most PS2 developers aren't utilizing the PS2's capabilites anywhere near the system's limits.
The X-Box game lineup isn't that extensive though. Halo, Project Gotham...that's
all I can think of for hits right now!
At the time of release it was a totally untested product. Microsoft jumped into the console waters (and probably only succeeded due to its Microsoft name and having near infinite funding). Nintendo and Sony both had previous systems that could show their quality. Even after release X-Box's release and showing that it could sell, a lot of developers are still signing with Sony and Nintendo.
X-Box Live costs money too! PS2 does it for free (although a little more limited). I'd rather have decent online console multiplayer then having to pay $100 a year for slightly better service.
In my opinion, the X-Box is a good system. As I stated before it's all relative though. If I had to spend my money on 1,000 spiral bound notebooks or an X-Box I'd rather buy the spiral bound notebooks (because they'd probably bring more money back at a public auction
). X-Box is
definetely not your best bet in the current generation of systems.