I think it's funny how Nat capitalizes "xBox". The official capitalization that was finally settled on was "Xbox". It annoys the marketing people to no end when people capitalize it wrong.
It totally does. I always thought the official was "XBOX"; "Xbox" looks like the way someone uninformed would write it or that it was an afterthought of a product.
Given enough time, everything becomes assimilated to look "normal". Consider the words RADAR (RAdio Detection And Ranging) and LASER (Light Amplification by Stimulated Emission of Radiation) -- what started as initialisms became normal words after people started using them regularly. It can presumably happen to newer words like "Xbox" and "Gmail" too.
I always thought xBox looked cooler.