Why didn't Fox Racing ever...

They did for a bit, the RC3 is considered a sweet unicorn for the off road dudes.  

I have a Fox Podium RC3 on a KX250F I used to ride. Was a fantastic shock for moto. 

Because they are making so much more money making truck, utv, and bicycle shocks than they ever could or did in mx.

BTW, Fox Racing is the apparel brand. You mean FOX Factory for the suspension company.

FOX absolutely did make MX shocks, Katie raced on one in '05-'06 (CR SuperMini) and FOX sent a full semi and a Tech to Loretta's for the Suzuki Mini RM Army riders & Katie. 

To this day I try to buy Mountain bikes with FOX forks & shocks because I thought so much about what they did for us.

My suspension guy told me he could do everything he could to the stock shock and it wouldn't compare to the FOX one out of the box. 

In the late 70s many bikes, especially Hondas, used Fox Air Shocks.

As others have stated they definitely did, that’s actually how the entire thing got started. Once the apparel business took off the suspension and apparel business split into separate entities

Moto13, legit question here - how old are you?

I thought it was two separate companies from the start with the two brothers?

Gotta be no older than late 20’s because I’m 35 and was well aware of Fox being in moto suspension even though it was before I was even alive. Then again, my family is like super hardcore moto.

From what I’ve gathered from various articles and podcasts about it, they started as a suspension and distribution company. They distributed shocks from a European brand, then they made their own version of it later on. Then I believe it was something along the lines of them starting a team to promote the distribution business, and they made custom gear for the riders to promote it. When the gear debuted they had crazy interest so they decided to sell it, and then eventually split into two with one handling hard parts (mostly suspension) and the other handling gear and apparel.

I know Gypsy Tales and Pulp both have podcasts with Pete Fox in which they go over the history

The Fox Brothers originally ran one company, MOTO-X FOX, that imported general motocross parts and accessories from other manufacturers. When one of the brothers decided to introduce a self-built Fox Shox line, a new company was formed for the suspension brand: FOX Factory.

And due to the success of the soft goods under the MOTO-X FOX brand, A separate apparel-focused company (Fox Racing) was created and run by the other brother.

This is the 1978 Team Moto x Fox team.

Moto was Fox Shox's bread and butter for a few years till production MX bikes came with shocks that could be revalved and the business dropped off quick. They than did a lot of custom stuff for various forms of motorsports to keep afloat... till.... They got a call from a snow mobile manufacturer that wanted to build 400 sleds (production rule type of thing) for some annual snow mobile race which you had to use a stock sled. The mfg'er won that race and Fox shocks had a new lease on life.  A bunch of the snow mobile company's came calling. It started what I believe was their first OEM business deals. This was 1987 ish?? Then the Mtn bike stuff came around with Cannondale than Specialized with that 4 bar link design... etc.. etc. So they were busy and making money in bigger markets then moto. 

Then Bob decided he wanted to build a mx shock again - not that it was a big market but he thought they should do it. Two shocks were built to test with. One went on Bob's 2005 CRF250X and one ended up on a 2005 CRF250R I had...Yoseph Hafner assembled and valved them. These were really nothing special. No real trick technology or parts. Yoseph did a revale on the one I had and told me "the tech in that shock is 20 years old". 

Bob then asked Mike Marquez - who came from Rock Shocks - to help him with a MX shock.. Marquez was the guy behind that RC3 shock. See below info on Mike....

Mike Marquez aka “Neezer” – Pioneering Contributions to Off-Road, Motocross Racing and Mountain Biking

In the 1980s, Neezer teamed up with Paul Turner, David Bailey’s Team Honda race mechanic and founder of Rock Shox, during the early days of ATV racing with Team Honda.

In the early 1990s, Neezer transitioned to downhill mountain bike racing, achieving a top ten finish at a NORBA National event.

As a co-founder of Santa Cruz Bicycles, Neezer entered the business startup world in late 1993. Alongside Rob Roskopp and Richard Novak, he helped establish Santa Cruz Mountain Bikes, a leading name in the industry.

Click here > — Video — < to watch Santa Cruz Mountain Bikes video by Event Santa Cruz.

The ROCK SHOX years 1996-2000.

Neezer joined ROCK SHOX in 1996 as the rear shock tuning specialist and product development lab manager. Neezer was a ROCK SHOX team member on the UCI mountain bike world cup tour during 1996-2000 tuning for such notable talent as John Tomac, Mike King, and world champions Greg Herbold, Dave Cullinan and Nicolas Vouilloz.

A note about ROCK SHOX, RS was founded by Paul Turner a former Team Honda motocross race mechanic and  Steve Simmons,  Steve is the inventor of the modern motocross inverted suspension fork.

The FOX SHOX years 2000 – 2016.

In 2000, Neezer joined FOX Racing Shox with a few other close business colleagues, one being Mike McAndrews the founder of Factory Connection and Jeff Ward’s race mechanic, Bill Becker and Brian Lampman who are also top notch bicycle suspension engineers.

Neezer was one of the original FOX Shox team members to help develop the FOX mountain bike fork program with key roles in testing, marketing, sales and USA / international race support.  Neezer stayed with FOX Racing Shox for over 17 years, and for the last six of those years, held both the product manager and shock test engineer positions for FOX off-road motorcycle suspension racing program and is a patent holder for some of the RC3 motorcycle shock design features known as F.A.S.T

“At FOX Racing Shox  we enjoyed many successes with top amateur’s racer’s with our MX-C fork cartridges and the Podium RC2/RC3 rear shocks; for example, with riders like Nicco Izzy, Jason Anderson, Eli Tomac, Adam Cianciarulo, Darren Durham, Cooper Webb”.

Bob split the Fox Factory suspension stuff off from Geoff's Moto X Fox sometime 77-78, but they still marketed together into the early 80s.

https://ridefox.com/blogs/stories/who-is-bob-fox

I seem to remember the Fox Factory Forx being a popular mod on '82 RM250Z to replace the spindly 38mm stock forks and made it a virtual works bike for the masses. 

https://www.vitalmx.com/features/Fox-Racing-Shox-Podium-RC3,2946

ROI, The amount they would need to spend to compete with WP (owned by KTM group) Showa( owned by Honda) and KYB simply would not give them a return worth while