I often wonder what the most critical factor was in the decision to completely shutter the Xband service in lieu of the next gaming generation. Was it the lack of capital to develop the service for use with next gen consoles? The complexity of developing for the Ps1, Saturn, and N64? Although console gaming was in its infancy, the potential was already there. In my opinion, the switch to mainstream newer consoles and the switch to a faster modem to reduce latency, all while working on the existing direct-dial structure, would have paid off handsomely for Catapult. What do you guys think?
On a side note, there were bits of news from Catapult at the time suggesting research into developing the service for use with the next-gen consoles, so it was certainly considered.
EDIT: the Xband wikipedia article states that it was new owner Mplayer that decided to end the service. The question still remains relevant though, as focusing on PC gaming didn't have to come to the exclusion of the consoles.
.Catapult was working on PC and Saturn based versions of the platform, when they were acquired by Mpath Interactive, and the focus shifted to the online PC Gaming service, Mplayer.com