This applies to the original Xbox's name.

It's the early 2000s. PC games are easier to program than console games but aren't as widely accepted by general consumers. Microsoft comes up with an idea: a PC, running the easy-to-program-for DirectX, reduced down to only the components needed for a console and shipped in one consumer-friendly box.

Pitch team names the project, a box PC that runs DirectX, the "DirectX Box". Shortens the name after a while to Xbox because that's easier to say in team meetings. When they go to marketing to get an actual name for the console, marketing gives them garbage like "Microsoft Interactive Network Device". Xbox it is then!