The Xbox 360 is a video game console produced by Microsoft, developed in cooperation with IBM, ATI, and SiS. Its Xbox Live service allows players to compete online and download arcade games and content such as game demos, trailers, TV shows, music videos, or rented movies. The Xbox 360 is the successor to the Xbox, and competes with Sony's PlayStation 3 and Nintendo's Wii as part of the seventh generation of gaming systems.

The Xbox 360 was officially unveiled on MTV on May 12, 2005, with detailed launch and game information divulged later that month at the Electronic Entertainment Expo. It is the first console to provide a near-simultaneous launch across the three major regions, and to provide wireless controller support at launch. The console sold out completely at release (with the exception of Japan) and, as of September 30, 2007, 13.4 million units have been sold worldwide.^[1] It is available in three versions as described below.

Overview

Development

Known during development as Xenon, Xbox 2, Xbox FS,^[4] Xbox Next or NextBox, the Xbox 360 was conceived in early 2003.^[5] In February 2003, planning for the Xenon software platform began, and was headed by Microsoft VP J Allard.^[5] That month, Microsoft held an event for 400 developers in Bellevue, Washington, to recruit support for the system.^[5] Also that month, Peter Moore, former president of Sega of America, joined Microsoft. On August 12, 2003, ATI signed on to produce the graphic processing unit for the new console, a deal which was publicly announced two days later.^[6] The following month, IBM signed on to develop the triple-core CPU for the console.^[5] Before the launch of the Xbox 360, several alpha development kits were spotted using Apple's Power Mac G5 hardware. This was due to the system's PowerPC 970 processor running the same PowerPC architecture that the Xbox 360 would eventually run under IBM's Xenon processor.

Launch

The Xbox 360 was released on November 22, 2005, in the United States and Canada; December 2, 2005, in Europe and December 10, 2005, in Japan. It was later launched in Mexico, Colombia, South Korea, Hong Kong, Singapore, Taiwan, Australia, New Zealand, South Africa, Chile, India, Brazil, Poland, Czech Republic and Russia. Microsoft has additionally announced official launches in: Hungary, Slovakia,^[7] and the Philippines.^[8] In its first year on the market, the system launched in 36 countries, more countries than any console has launched in a single year.^[9] Due to its early launch, the Xbox 360 has a one-year lead on both of its competitors, Sony's PlayStation 3 and Nintendo's Wii.

Retail configurations

Microsoft's retail strategy attempts to capture consumer surplus by providing several configurations (SKU's) of the system in different price ranges. The Xbox 360 is available in three standard variants; the "Xbox 360 Arcade", the "Xbox 360" and the "Xbox 360 Elite".^[10] A discontinued SKU, the "Xbox 360 Core", was replaced by the "Xbox 360 Arcade" in October 2007.^[11]

At launch, the Xbox 360 was available in two configurations: the "Xbox 360" package, priced at US$399, and the "Xbox 360 Core", priced at US$299. The Elite package was launched later at US$479, and the "Xbox 360 Arcade" replaced the "Xbox 360 Core" in October 2007 at US$279. Prices have been reduced since.

• The Xbox 360 Core was an entry level Xbox 360 priced at US$279.99. The "Core" is no longer listed on Xbox.com, being replaced by the Xbox 360 Arcade.^[12] It was not originally available in Japan, but was later released on November 2, 2006.^[13] The Core system comes bundled with composite video cables, capable of only SDTV resolutions, but newer models with lot number 0728 or greater have an HDMI 1.2 output. The Core may output HD signals up to 1080p when connected to separately sold HDMI, Component, or VGA cables. It may also use a separately sold 20 or 120 GB hard drive.
• The Xbox 360 Arcade,^[14] priced at US$279.99,^[15] is the replacement for the "Xbox 360 Core".^[16] It was publicly revealed (though it was available in stores far earlier)^[17] by Microsoft's president of Entertainment Devices devision Robbie Bach to the Financial Times on October 18, 2007,^[15] and officially announced on October 22, 2007.^[18] It includes a wireless controller, 256 MB memory unit, composite AV cable, HDMI 1.2 output, and 5 Xbox Live Arcade titles.^[19] Holiday 2007 consoles, with packaging labeled "Go Play!", are bundled with Boom Boom Rocket, Feeding Frenzy, Luxor 2, Pac-Man Championship Edition, and Uno on a single disk, which also includes a "Welcome Video" and several game trailers/demos.^[20]
• The Xbox 360, commonly called the Premium or Pro, priced at US$349.99, includes all the features of the Xbox 360 Core, but includes a hybrid composite and component cable with optional optical out instead of a composite cable. The Xbox 360 also includes a detachable 20 GB Hard Disc Drive to store Xbox Live Arcade games, game demos, Xbox LIVE Marketplace TV and Movies, provide compatibility with original Xbox games and store game data. The included hard drive comes preloaded with game demos, video clips and a free Live Arcade game, Hexic HD. In July 2007, this version of the Xbox 360 began appearing with the Zephyr motherboard (the motherboard used in the Elite) which features HDMI 1.2 output and an improved GPU heatsink. The Premium package, which does include the HDMI 1.2 output, does not come with the HDMI 1.2 cables.^[21] The console's packaging displays the HDMI logo to reflect this addition.^[22] Starting at the end of September, the newest systems were shipped with the new "Falcon" motherboard, making the famous hardware failures a thing of the past. On this new motherboard is the new 65-nm CPUs, making them quieter and cooler than the older systems.^[23] Holiday 2007 consoles, with packaging labeled "Go Pro", are bundled with Marvel: Ultimate Alliance and Forza Motorsport 2. ^[24]
• The Xbox 360 Elite is the fourth and most expensive variation of the console. Priced at US$449.99, it is unique in that it includes a 120GB hard drive as standard, and a matte black finish. The Elite retail package also includes an HDMI 1.2 cable and a controller and headset matching the system's black finish.^[25] Other matte black accessories, such as the Play and Charge Kit, are also available. The initial release price was US$479.99,^[26] C$549.99,^[26] £300.00 and AU$729.95. The Elite was released in Europe on August 24, 2007, and Australia on August 30. Holiday 2007 consoles, with packaging labeled "Go Big", are bundled with Marvel: Ultimate Alliance and Forza Motorsport 2.^[27]

  XBox Assembly

  Video, Movie, Film, Clip. Mpeg, Wmv

Special editions

On a few occasions, Microsoft has produced special editions of the console, usually to coincide with the release of a major product. These special editions are typically custom-colored Xbox 360 models, and are produced in limited numbers.

• At the E3 2007 press conference, Microsoft announced the Halo Special Edition of the console, released September 16, 2007. It sports a Halo theme (on the console, wired headset, and wireless controller). Besides the unique color scheme, its features are identical to that of the Premium system.^[28] It is priced at US$399.99 and £279.99 (the original price of the Xbox 360 Premium).^[29]

• To promote The Simpsons Movie, Microsoft created a specially-designed, yellow Xbox 360 console.^[30] This configuration is based on the Xbox 360 Premium package, with the only difference being the color scheme of the Xbox 360 console and wireless controller. The console was to be given out to winner of drawings taking place between July 18, 2007 and July 27, 2007, in which a name was randomly drawn each day in the "10 Days and 10 Chances to Win" sweepstakes.^[31] This edition is limited, as 10 consoles were produced. ^[32]

Comparison of features

Information in the table below is based on the latest specifications. Older packaging may not include all items listed.

Xbox LIVE

On the day of the Xbox 360's release, Microsoft's online gaming service Xbox LIVE was shut down for 24 hours and went through a major upgrade, adding a basic non-subscription service, Silver, to its already established premium subscription-based service. Xbox LIVE Silver is free of charge and included with all SKUs of the console and allows users to create a user profile, join on message boards, as well as access Microsoft's Xbox Live Arcade and Marketplace and talk to other members.^[34] An Xbox LIVE Silver account does not generally support multiplayer gaming; however, some games that have rather limited online functions anyway (eg. Viva Pinata) or games that feature their own subscription service (eg. EA Sports games) can be played with a Silver account. Xbox LIVE supports voice communication along with video communication, a feature possible with the Xbox Live Vision; an add-on USB web camera designed specifically for the Xbox 360.^[35] The Gamertag of a player with a Silver account has a silver trim, rather than gold.

Xbox LIVE Gold has the same features as Silver, plus integrated online game playing capabilities outside the third-party subscriptions previously mentioned. Microsoft has allowed for previous Xbox LIVE subscribers to maintain their profile information, friends list, and games history when they make the transition to Xbox LIVE Gold. To transfer an Xbox LIVE account to the new system, users need to link a Windows Live ID to their gamertag on Xbox.com.^[36] When users go to add an Xbox LIVE enabled profile to their console, they need to provide the console with their passport account information and the last four digits of their credit card number, which is used for verification purposes and billing. An Xbox LIVE Gold account has an annual cost of US$49.99, C$59.99, GB£39.99, or €59.99. As of July 11, 2007, Xbox LIVE has over 7 million subscribers.^[37]

Xbox LIVE Marketplace

The Xbox LIVE Marketplace is a virtual market designed for the console that allows Xbox LIVE users to download purchased or promotional content. The service offers movie and game trailers, game demos, Xbox LIVE Arcade games, gamertag images and Xbox 360 Dashboard themes as well as in-game content (items, costumes, levels etc). These features are available to both silver and gold members on Xbox Live. A hard drive or memory unit is needed to store products purchased from Xbox LIVE Marketplace.^[38] In order to download priced content, users are required to purchase Microsoft Points for use as scrip.^[39] Some products are free to download. Users were able to view items available to download on the service through a PC via the Xbox Live Pipeline website.^[40] An estimated seventy percent of Xbox LIVE users download items from Marketplace.^[41]

Xbox Video Marketplace

On November 6, 2006, Microsoft announced Video Marketplace, an exclusive video store accessible through the console. Launched in the United States on November 22, 2006, the first anniversary of the Xbox 360 launch, the service allows users in the United States to download high-definition and standard-definition television shows and movies through Xbox LIVE onto an Xbox 360 console for viewing. At launch the service offered 800 hours of standard footage, and 200 hours of high definition. With the exception of short clips, content is not currently available for streaming, and must be downloaded. Microsoft has also announced that its Microsoft TV service will add IPTV functionality to the console, giving users the ability to stream 2 simultaneous HD and 2 simultaneous SD channels.^[42] Movies are available for rental. They expire in 14 days after download or at the end of the first 24 hours after the movie has begun playing, whichever comes first. Television episodes can be purchased to own, and are transferable to an unlimited number of consoles. Downloaded files use 5.1 surround audio and are encoded using VC-1 for video at 720p, with a bitrate of 6.8 Mbit/s.^[43] Content is offered from MTV, VH1, Comedy Central, Turner Broadcasting, CBS for television; and Warner Bros., Paramount, and Disney for movies along with others.^[44]

After the Spring 2007 update, the following video codecs will also be supported:

• H.264 video support: Up to 15 Mbit/s, Baseline, Main, and High (up to level 4.1) Profiles with 2 channel AAC LC and Main Profiles.
• MPEG-4 Part 2 video support: Up to 8 Mbit/s, Simple Profile with 2 channel AAC LC and Main Profiles.

During Microsoft Press Conference at E3 2007 on July 10, 2007 it was announced that Xbox LIVE users in Europe and Canada would be able to use the exclusive video store that is a major hit in the United States by the end of 2007.

Xbox LIVE Arcade

Xbox LIVE Arcade is an online service operated by Microsoft that is used to distribute arcade video games to Xbox and Xbox 360 owners. In addition to classic arcade games such as Ms. Pac-Man, the service offers some new original games like Assault Heroes. In addition it features games from other consoles, such as the PlayStation's Castlevania: Symphony of the Night and PC games such as Zuma. The service was first launched on November 3, 2004,^[45], using a DVD to load, and offered games for about US$5 to $15. Items are purchased using Microsoft Points, a proprietary currency used to reduce credit card transaction charges. On November 22, 2005, Xbox LIVE Arcade was re-launched with the release of the Xbox 360, in which it was now integrated with the Xbox 360's dashboard. The games are generally aimed toward more casual gamers; examples of the more popular titles are Geometry Wars: Retro Evolved, Street Fighter II' Hyper Fighting, and UNO.^[46]

Multimedia

The Xbox 360 supports videos in .wmv-format, as well as high-definition .wmv-videos, H.264, MPEG-4, and Playsforsure WMV videos.

And with the Fall 2007 dashboard update, the Xbox 360 now supports the playback of MPEG-4 ASP format videos (for example, encoded with DivX or Xvid).[13]

The Xbox 360 also supports audio playback, with music player controls accessible through the Xbox 360 Guide button. Users may play back their own music while playing games or using the dashboard, and can even play music along with an interactive visual synthesizer.

The Xbox 360 can also display pictures and perform slideshows of photo collections with various transition effects. Users can also play audio in the background while presenting a slideshow of photos.

Music, photos and videos can be played from standard USB mass storage devices, Xbox 360 proprietary storage devices (such as memory cards or Xbox 360 hard drives), and servers or computers with Windows Media Center Edition within the local-area network in streaming mode. This is possible with video files up to HD-resolution and with several Codecs (MPEG-2, MPEG-4, WMV) and container formats (WMV, MOV, TS).^[47]

Software

Dashboard

Microsoft tasked AKQA with creating the graphical user interface or GUI. The console's GUI is the Xbox 360 Dashboard; a tabbed interface that features five "Blades" (formerly only four blades). It can be launched automatically when the console boots up without a disc, or when the disc tray is ejected. However, the user may choose to launch a game automatically if a disc is inserted. A simplified version of it can also be accessed at any time via the Xbox Guide button on the gamepad. This simplified version shows the user's gamercard, Xbox LIVE messages and friends list. It also allows for personal and music settings, in addition to voice or video chats, or returning to the primary Dashboard from the game.

Since the console's release, Microsoft has released several updates for the Dashboard software. These updates have included adding new features to the console; enhancing Xbox Live functionality and multimedia playback cabilities; adding compatibility for new accessories; and fixing bugs in the software. The latest Dashboard update, revision 2.0.6683, was made available on December 4, 2007.

Microsoft XNA

Microsoft XNA is a set of tools and technologies that includes XNA Studio, which provides versions of key production tools such as asset management, defect tracking, project automation and work lists. These tools are designed to work together to automate common development tasks and present interfaces tailored to the different functions within the team. John Carmack stated at QuakeCon 2005 that the Xbox 360 has "the best development environment I've seen on a console".^[48] Microsoft XNA also includes other components such as the XNA Framework and XNA Build.

Anyone can develop a game using XNA Game Studio Express, an IDE for homebrew developers, which was initially released in beta form on August 30, 2006. A second, near feature complete beta version was released on November 1, 2006.^[49] The final feature complete version, 1.0, was released on December 11, 2006.^[50] For a US$99/GB£65 yearly subscription fee users can join a "creators club" which lets them transport code onto their 360 and share their content with others. In the UK, there is also a 4 month subscription to the "Creators [sic] Club" which costs £30 GBP.

Backward compatibility

Backward compatibility is achieved through software emulation of the original Xbox. Emulated games offer graphical enhancements because they are rendered in 720p, 1080i, or 1080p HD resolution with anti-aliasing enabled rather than the Xbox standard of 480p^[51] (anti-aliasing is also applied when the output resolution is 480p.) Some games also benefit from an improvement in the rendered draw distance, possibly due to the system's greater memory bandwidth. However there are also games that do not perform well in emulation; these often exhibit a lower framerate on the Xbox 360,^[52] as well as various sound bugs and occasional gameplay glitches. A hard drive and the downloading of an emulation profile is needed in order to play original Xbox games. Updated emulation profiles are automatically obtained through Xbox LIVE, or alternatively they can be burned to a CD with files downloaded from Xbox.com, or by ordering a free update disc from Microsoft. The full list of backward-compatible games is maintained at Xbox.com.

The current U.S. list includes 464 games as of the November 2007 update; fewer titles are backward compatible in European and Japanese markets, with 295 and 101 titles, respectively. Microsoft has stated that they intend to release more emulation profiles as they become available, with a goal of making the entire Xbox library playable on the Xbox 360. They have since made multiple statements indicating that this may never be complete, and the rate of updates to the backwards compatibility list is in line with this stated attitude.^[53]

Xbox Originals

As part of the December 4 dashboard update, a new feature called Xbox Originals was launched allowing people to download original Xbox games directly to their Xbox 360. The games have not beeen altered in any way and are available for 1200 Microsoft Points each.^[54]

The games that were available from the launch of the new service are: Halo: Combat Evolved, Fable, Crash Bandicoot: The Wrath of Cortex, Psychonauts, Indigo Prophecy, and Crimson Skies: High Road to Revenge.

Game library

The Xbox 360 launched with a number of games. The console's best-selling game for 2005, Call of Duty 2, sold over a million copies.^[55] Five other games sold as well in the console's first year in the market: Ghost Recon Advanced Warfighter,^[56] The Elder Scrolls IV: Oblivion,^[57] Dead or Alive 4,^[58] Saints Row^[59] and Gears of War.^[60] As of November 30, 2007, Halo 3 is the Xbox 360's best-selling game with 5 million copies sold.^[3] First-party developer Rare had two games at launch: Perfect Dark Zero and Kameo: Elements of Power. Only six games were initially offered in Japan, and eagerly anticipated titles like Dead or Alive 4 and Enchanted Arms were not released until several weeks after launch. Games more suitable to the region are planned or have since been released, such as Chromehounds, Ninety-Nine Nights, and Phantasy Star Universe. Microsoft-backed Mistwalker has since released Blue Dragon in the region, and currently has two other Japanese-style games in development, Lost Odyssey and Cry On. On October 19, 2006, over 10,000 pre-orders of a limited-edition Blue Dragon bundle sold out in Japan on the first day. The pack, priced at JP¥29,800 includes the Xbox 360 core system with a copy of Blue Dragon, along with a table calendar, Blue Dragon faceplate, and five miniature character figures. At the Lepzig game convention in 2007, Microsoft revealed details of PGR4, Rock Band, Tom Clancy's EndWar, Dark Sector, FIFA 08, Call of Duty 4 Modern Warfare and Tony Hawk's Proving Ground.

E3 2006 was the first large-scale show after the console's launch and the first trailer for Halo 3, the sequel to the original Xbox's best-selling game, was shown there. Fable 2, a sequel to the Xbox's best-selling RPG,^{[citation needed]} was also shown, along with Alan Wake, Mass Effect and Too Human. Bill Gates spoke of plans to integrate several Microsoft services into one entity with Live Anywhere. This service will allow multiplayer games and communication possible between Xbox 360 and the Windows Vista operating system for the PC. Shadowrun was the first game announced to be compatible with Live Anywhere. Several games originally released on PC have also been released on the Xbox 360, such as F.E.A.R. and Quake 4. Grand Theft Auto IV was shown and will be the first title in the series to be released for the Xbox 360 the same day as its PlayStation 3 counterpart. At X06, Microsoft announced new titles, along with information on future releases. Splinter Cell: Conviction, set to release after Splinter Cell: Double Agent, was announced to be exclusive to the Xbox 360, as were BioShock and Banjo-Kazooie 3. At the event, Halo Wars was also announced, along with an untitled Halo project. Microsoft published sequels to some of its more successful franchises on the original Xbox, such as Forza Motorsport 2, Project Gotham Racing 3 & 4, and Fuzion Frenzy 2. In addition to sequels, they have published original games based on new IPs such as Viva Piñata and Gears of War.

Hardware and accessories

Hardware

The main unit of the Xbox 360 itself has slight double concavity in matte white or black. It features a port on the top (when vertical, left side when horizontal) to which a custom-housed hard drive unit can be attached in sizes of either 20, or 120 GB. Inside, the Xbox 360 uses the triple-core IBM designed Xenon as its CPU. Graphics processing is handled by the ATI Xenos which has 10 MB of embedded eDRAM. Its main memory pool is 512 MB in size.

Accessories

Many accessories are available for the console including both wired and wireless controllers, a wireless steering wheel, headsets, a webcamera, an HD DVD player, two sizes of memory cards, two sizes of hard drives, among other items, all of which are styled to match the console.

Technical problems

The Xbox 360 can be subject to a number of possible technical problems. Since the console's release in 2005, the console's reliability gained a bad reputation from the general public, and in the press through articles portraying its poor reliability and relatively high failure rates.^{[62][63][64][65]}

Microsoft has subsequently introduced design revisions, and extended the 360's manufacturer's warranty to three years.

As of September, 2007, all Xbox 360's manufactured after this period is equiped with the new Falcon motherboard. This motherboard has a revised design and construction making room for the new 65nm CPU and CPU/GPU cooling system. Making it more quiet and reliable than before. Microsoft claims that with this new version that all hardware failures are now a bad memory.

Sales

Quarter	Units sold
Q4 2005	1.5 million[66]
Q1 2006	1.7 million[67]
Q2 2006	1.8 million[68]
Q3 2006	0.9 million[69]
Q4 2006	4.4 million[citation needed]
Q1 2007	0.5 million[70]
Q2 2007	0.8 million[citation needed]
Q3 2007	1.8 million[71]
Cumulative totals
to Q3 2007	13.4 million[1]

The Xbox 360 began production only 69 days before launch.^[72] As a result, Microsoft was not able to supply enough systems to meet initial consumer demand in Europe or North America.^[73] Many potential customers were not able to purchase a console at launch. This lack of availability caused Xbox 360 bundles to sell on eBay at inflated prices; some auctions exceeded US$6,000. Forty thousand units appeared on eBay during the initial week of release; this was 10% of the total supply.^[74] By year's end, Microsoft had shipped 1.5 million units, including 900,000 in North America, 500,000 in Europe, and 100,000 in Japan.^[75]

At E3 in May 2006, Bill Gates announced that Microsoft would have a head start of 10 million units by the time Sony and Nintendo enter the market.^[76] Microsoft later specified that goal and estimated shipments of 10 million units by the end of 2006,^[77] a target it passed by 400,000 units.^{[citation needed]} As of August 2007, the Xbox 360 has sold 8.9 million units worldwide.^{[citations needed]} As of September 1, 2007, 6.3 million Xbox 360 units have been sold to consumers in the United States,^{[citations needed]} and as of July 18, 2007, 420,000 units in Japan.^{[citation needed]} Although the console had struggled in Japan, it has just recently outsold the PS3 for its first week in Japan.^[78]

During an earnings call in January 2007, Microsoft's CFO downgraded estimated Xbox 360 sales for the first half of 2007.^{[citation needed]} Cumulative sales from the system's launch until June 30, 2007 were predicted to reach 12 million units, down from 13 to 15 million units estimated earlier. Microsoft later announced they shipped 11.6 million units cumulative to June 30, 2007.^{[citations needed]} Being released one year ahead of its competitors, the Xbox 360 was the market leader throughout the first half of 2007. However on September 12, 2007, it was reported by the Financial Times that the Xbox 360 had been surpassed by the Wii in terms of worldwide console sales.^[79] On October 4, 2007, Microsoft stated that Xbox 360 sales have more than doubled when compared with the weekly average before the Halo 3 launch.^[80]

Based on figures from October 19, 2007, the Xbox 360 outsold the Wii for the month of September in North America, helped in part by the spike in sales seen after the launch of Halo 3, which sold 3.3 million copies in the U.S. in a 12-day period. The Xbox had sales of 528,000 units for September, while the Wii had sales of 501,000 units.^[81]

However, despite these sales figures, Microsoft's gaming division is losing money. Up to 2005, the Xbox gaming division had lost over $4 billion dollars.^[82] However, Microsoft expects the console will start making money in 2008.^[83] The losses are due to the market strategy of selling consoles below cost in order to obtain market saturation and turn a profit on software and peripherals that have a much higher profit margin.^[84][85] Also notable is that Microsoft expects it needs to spend one billion dollars for repairs or replacements of bricked Xbox 360s^{[citations needed]}

Homebrew development

Free60 is the successor to the Xbox Linux Project that put Linux, BSD, or Darwin on the new Xbox 360. The dashboard released on January 9, 2007 (version 2.0.4552) might hinder installation of current sold units.