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Xbox 360

Xbox 360 logo
File:Xbox 360.png
Manufacturer	Microsoft
Type	Video game console
Generation	Seventh generation era
Lifespan	November 22 2005 (details)
Units sold	United States: 5.4 million consumer sales as of May 18 2007. Japan: 420,000 consumer sales as of July 18 2007.
Units shipped	Template:Country data World Worldwide: 11.6 million as of July 2007.
Media	DVD, DVD-DL, CD, Add-On: HD DVD
CPU	3.2 GHz PPC Tri-Core Xenon
Storage	20 or 120 GB hard drive, 64 or 512 MB memory cards
Graphics	500 MHz ATI Xenos
Controller input	4 maximum (wired or wireless or combination of either)
Connectivity	3 × USB 2.0, IR port, 100Mbit Ethernet
Online services	Xbox Live
Best-selling game	Gears of War
Backward compatibility	394 original Xbox games (requires hard drive and the latest update)
Predecessor	Xbox

The Xbox 360 is a seventh generation video game console produced by Microsoft, developed in cooperation with IBM, ATI, Samsung, 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 it 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 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 Q2 2007, shipped 11.6 million units worldwide. A new SKU entitled the Xbox 360 Elite features HDMI output, a 120GB HDD and a matte black finish.

Overview

Development

Known during development as Xenon, Xbox 2, Xbox Next or NextBox, the Xbox 360 was conceived in early 2003. In February 2003, planning for the Xenon software platform began, and was headed by Microsoft VP J Allard. That month, Microsoft held an event for 400 developers in Bellevue, Washington, to recruit support for the system. 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. The following month, IBM signed on to develop the triple-core CPU for the console. Before the launch of the Xbox 360, several alpha development kits were spotted using Apple's Power Mac G5 hardware. Microsoft chose to use these systems for their PowerPC architecture, which is similar to that of the Xenon CPU used in the system. Unfortunately, the framerates suffered running the Xbox 360 games on the G5. A rough estimate placed the G5 at about one-third as powerful as the 360, and not powerful enough to properly run the Xbox 360 titles on display at full speed. On October 24 2005, Microsoft shut down Xbox Live for a day to upgrade it for the Xbox 360.

Launch

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Handheld	Bemani Pocket Coleco Sonic Game & Watch VG Pocket Max Pokémon Pikachu Tomytronic 3D
List

The promotional campaign for Xbox 360 began on March 14 2005, with the opening of an alternate reality game called OurColony. Throughout March and April it offered challenges to its community, rewarding solutions with cropped pictures of the console and game screenshots. The end of OurColony came on May 12 2005, with the release of a video where J Allard of Microsoft showed off the Xbox 360 console. The official unveiling of the Xbox 360 occurred the same day on MTV in a program called MTV Presents: The Next Generation Xbox Revealed. In October 2005, a similar alternate reality game was created, Hex168, to promote the system before 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, and Czech Republic. Microsoft has additionally announced official launches in: Hungary, Slovakia, and the Philippines. In its first year on the market, the system launched in 36 countries, more countries than any console has launched in a single year. 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 involves providing choice to customers. The Xbox 360 is available in three variants; the 'Xbox 360 Core', the 'Xbox 360' (colloquially known as the "Pro" package), and the Xbox 360 Elite. At launch, the Xbox 360 was priced at US$399 and the Core System was priced at US$299. The Elite package was not launched with the rest of the platform.

BusinessWeek magazine compiled a report that estimates the total cost of components in the standard bundle at US$525 at launch, excluding manufacturing costs, meaning that Microsoft initially lost money on every Xbox 360 system sold. The strategy of selling a console at a loss or near-loss is common in the console games industry, as console makers expect to make up the loss through game licensing. Since Microsoft owns the intellectual property rights to the hardware used in the Xbox 360, they can easily switch to new fabrication processes or change suppliers in the future to reduce costs. Thanks to streamlined processes and ample component supplies, a report from iSuppli released on November 16 2006, estimates the total cost of components in the pro bundle is US$323.30. This flexibility stands in contrast to the situation Microsoft faced with the original Xbox, where manufacturing costs were never reduced below the break-even point. Microsoft is predicting that with the Xbox 360, a greater market share, yearly revenue through their Xbox Live service, and falling hardware costs will eventually make system sales profitable.

All three can support all optional accessories like the Wireless Racing Wheel, Universal Media Remote, Xbox Live Vision, Xbox Live Wireless Headset and HD DVD Player.

All configurations include one year warranties: although consoles purchased in Canada and the United States before December 21 2006 originally had 90 day warranties (which were upgraded to one year), they were later retroactively extended to match the one year policies in newer regions.. However any unit that exhibits "General Hardware Failure" 3 Red Light condition will be covered for 3 years from date of purchase. It should be noted that the 3 year warranty only covers this issue, all other issues are limited to the standard 1 year warranty.

Each SKU contains different video cables; the core system comes with composite cables, the pro includes a hybrid composite and component cable with optional optical out, while the elite includes the aforementioned cables with the addition of an HDMI cable.

Microsoft is moving to the 65 nanometer manufacturing process (from the current 90 nm) later this year, for both the CPU and GPU. This would reduce the amount of heat the console produces, meaning it can run quieter and cooler than current models.

Region	Xbox 360 Elite	Xbox 360 Premium	Xbox 360 Core
Australia		A$599.95	A$399.95 (to be discontinued)
Brazil		R$2999.00
Canada	C$499.99	C$399.99	C$299.99
Czech Republic		CZK11900.00	CZK8999.00
Chile		CLP279.990	CLP199.990
Denmark		DKK 2699	DKK 1999
Eurozone		€399.99	€299.99
Finland		€409.99	€309.99
India		Rs23,990	Rs19,990
Ireland		€409.99	€299.99
Japan	¥47,800	¥39,795	¥29,000
Latvia		Ls320.00	Ls240.00
Mexico		MXN4999.99	MXN 3999.99
New Zealand		NZ$718.95	NZ$549.95
Norway		NOK3395	NOK2595
Philippines		P21500	$420
Portugal		€409.99	€309.99
Singapore		SG$660.00	$535.00
South Africa		R3699	R2699
South Korea		₩419,000	₩339,000
Sweden		SEK3300	SEK2500
Taiwan		NT$12980	NT$9970
United Arab Emirates		Dh1,799
United Kingdom	£329.99	£279.99	£199.99
United States	US$449.99	US$349.99	US$279.99

See also: Launch dates and prices, for initial pricing

Xbox 360 Core

The Xbox 360 Core is the entry level Xbox 360. It was not originally available in Japan, but was released on November 2 2006. In Australia, New Zealand, and Mexico a Media Remote was included as a substitution for the Xbox Live headset in the Xbox 360 Package. The same remote was included for a limited time at launch in the standard white-box package. The Core system comes bundled with composite video cables, capable of only SDTV resolutions. The Core may output HD signals up to 1080p when connected to separately sold Component or VGA cables. It may also use a separately sold 20 or 120 GB hard drive. BestBuy has announced that they will discontinue selling the Core package.

Xbox 360 Premium

The Xbox 360, available at launch, includes all the features of the Xbox 360 Core. 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 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. These items cannot be recovered if the user chooses to delete them from the drive. The Xbox 360 also includes a Wireless Xbox 360 Controller, Xbox Live headset, whilst some regions feature an Xbox Media Remote or pre-paid 12 month subscription to Xbox Live Gold. The Xbox 360 is often referred to by retailers and publications as the "Xbox 360 Pro" or "Premium" to differentiate it from the Core package, though this is not officially used or encouraged by Microsoft. As of 9th August 2007 the premium SKU of the Xbox 360 will feature HDMI output. The packaging will show the HDMI logo to reflect the new port on the Xbox 360.

Xbox 360 Elite

In 2007, Microsoft announced a revision to the Xbox 360's hardware, designed to take advantage of the console's popularity as a media-delivery system. The Xbox 360 Elite is the third and most expensive variation of the console. By making variations of the console, Microsoft hopes to appeal to all types of gamers. The Elite is different from the other variations in that it includes HDMI output, a 120 GB hard drive included, and a black case. The Elite retail package also includes an HDMI cable, and a black controller and headset to match the system's black finish. This version of the console was previously known under the codename Zephyr. On March 27 2007, Microsoft confirmed that the Elite would be released in the United States on April 29 2007 and in Canada on May 4 2007 as a mainstay to the Xbox 360 line and not a 'limited edition' version as originally speculated. The initial release price was US$479.99 and C$549.99. On July 10 2007 at E3 2007, Microsoft announced that the Xbox 360 Elite will be coming to Europe on August 24 2007, and is expected to be priced at £329.99 in the UK.

Special Editions

Xbox Live

When the Xbox 360 initially launched, Microsoft's online gaming service Xbox Live went through a major upgrade, adding a basic non-subscription service, Silver, to its already established premium subscription-based service, Gold. Xbox Live Silver is free of charge 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. An Xbox Live Silver account does not generally support multiplayer gaming; however, some games that feature their own subscription service 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.

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. 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.

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, gamer tag 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. In order to download priced content, users are required to purchase Microsoft Points for use as scrip. Some products are free to download. Users are able to view items available to download on the service through a PC via the Xbox Live Pipeline website. An estimated seventy percent of Xbox Live users download items from Marketplace.

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, and offers games for about US$5 to $15. Items are purchased using Microsoft Points, a scrip 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 new games and features were offered. 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.

Xbox Video Marketplace

On November 6 2006, Microsoft announced Xbox Live Video, 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. 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. Content is offered from MTV, VH1, Comedy Central, Turner Broadcasting, CBS for television; and Warner Bros., Paramount, and Disney for movies along with others.

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 would be able to use the exclusive video store that is a major hit in the United States by the end of 2007.

Software

Dashboard

The console's graphical user interface 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.

The Base Kernel Version of the dashboard is 2.0.1888. The first major update, version, 2.0.2857, was released on June 6 2006. This version gave users the option to resume DVD playback from where it was last stopped as well as the option to boot to either a disc or the dashboard. New slideshow options were added for Photo Viewing, which can save folder layout between sessions. Xbox Live Marketplace was reorganized and users can now have concurrent downloads, allowing multiple downloads as background tasks.

Dashboard version 2.0.4532.0 was released on October 31 2006. It allows the Xbox 360 to output video at 1080p and installs support for Zune and the external HD DVD drive attachment. WMV files can be streamed from a computer through the use of Windows Media Connect, connected USB device or a CD. Windows Media Player 11 was added as a supported streaming program. Macintosh users can stream audio and video using Connect360. Xbox Live Arcade can now be set to automatically download trial versions of any newly released titles. Cosmetic changes to the dashboard were also made.

Dashboard revision 2.0.4548 was released on November 30 2006. It improved performance on wired headsets when used with a wireless controller and fixes video output issues on VGA connections.

The next Dashboard revision is 2.0.4552, released on January 9 2007. It fixes a buffer overflow that would have allowed non-signed code (such as the Linux operating system) to run on the Xbox 360, with direct hardware access. As with all updates, this one is mandatory if the user signs into Xbox Live; this update also ships with games released after that date.

The latest dashboard update, revision 2.0.5759, was made available on May 9, 2007. A fifth blade was added for the Marketplace (which was also given a more consistent interface), and the Dashboard also includes Windows Live Messenger integration. The update also makes the "Achievement Unlocked" message more specific, as it will detail the achievement unlocked and how many points it was worth. It also added support for MPEG 4 based videos though several containers. It also added a low-power background download function that would put your console in a low power mode if you turn it off with downloads going (will turn off the fans) and will fully power the system off once downloads are complete. Two new languages, Russian and Polish were added as well, an option to boot straight into Media Center Extender mode (as well as changing the MC logo to the Vista version),and an option to automatically download all free Xbox Live Arcade games, and added "Reference Levels" to the video support.

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". 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. The final feature complete version, 1.0, was released on December 11 2006. 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 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; 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, 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 394 games as of the July 12 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.

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. Only five other games sold this amount in the console's first year in the market; Ghost Recon Advanced Warfighter, The Elder Scrolls IV: Oblivion, Dead or Alive 4, Saints Row and Gears of War. Gears is also the 360's currently best selling game with close to 4 million copies sold. First-party developer Rare had two games at launch: Perfect Dark Zero, which was Rare's first major commercial success after their acquisition by Microsoft; and was believed by some to be the console's flagship launch title; 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.

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, 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 is publishing 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 concavity on both of its longer sides 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. While graphics processing is handled by the ATI Xenos, that has 10 MB of embedded eDRAM. Its main memory pool is 512 MB in size.

Accessories

There are many accessories for the console, these include wired or wireless controllers, wireless steering wheel, wired or wireless headsets, an HD DVD player, two sizes of memory cards, two sizes of hard drives and more. All styled to match the console.

Technical problems

The Xbox 360 can be subject to a number of possible technical problems. Since the Xbox 360 console was released in 2005 the console gained reputation in the press in articles portraying poor reliability and relatively high failure rates.

Like many modern electronics, the Xbox 360 is equipped to communicate its operational status to its users. This status is normally shown via array of green lights on the Xbox 360's Ring of Light. In the case of an undesirable state, the machine provides indication to the user through one of several means. This display maybe an error message for most minor errors, or a Screen of Death in the instance of an unrecoverable software failure. Rebooting the system relieves most errors, the console booting up fully functional. However, in the case of a hardware condition, the Ring of Light display on the front of the console itself changes from green to red, the number of sectors illuminated informing a user what category the error falls into. On September 29 2006, Microsoft released a statement saying that they will waive the cost for repairs on all Xbox 360 consoles made before January 1 2006, and refund any fees already paid. However, as of January 1 2007, Microsoft has discontinued the policy to fix the pre-2006 consoles for free. On December 21 2006 the warranty for all consoles purchased in Canada and the United States was extended from 90 days to one year.

On April 14, 2007, the Dutch TV program "Kassa", as a reaction of over a thousand customers complaining about the fact that their Xbox 360s had scratched their game discs, broadcasted a program in which they revealed a test they had done. The test indicated that some Xbox 360s, equipped with Toshiba Samsung Storage Technology (TSST) DVD players, scratch DVDs spontaneously, even when the Xbox is placed on a stable surface, rendering some games unplayable. A reseller (BOL.com) that was sued by one of the gamers that took part in the Kassa program attended the broadcast and provided replacement equipment to the user. Additionally, they informed Kassa "that they had contacted the 1% of users who reported the problem with the offer of replacing all their game discs and consoles". Microsoft itself however refused to take part in the program, but just one day before the program broadcasted they sent Kassa a formal letter in which they told Kassa the customers can contact them whereupon they will "examine the console and make appropriate repairs if necessary in order to restore the console to full working order", and also wrote that “…it is possible that scratches may originate from frequent use."

In the beginning of June 2007 the European Commission started an investigation into these scratching problems.

In July 9 2007 a lawsuit was filed in a Florida federal court by one Jorge Brouwer, who claims Microsoft has received thousands of complaints about the disk scratching problems but has not replaced all scratched disks, and that the consoles are "negligently designed and manufactured." The lawsuit sought class-action status.

On July 26 2007 the Law Firms of Wasserman, Comden, and Casselman, LLP of Los Angeles, California and Stritmatter, Kessler, Whelan, Coluccio of Seattle, Washington announced they are investigating consumer complaints regarding the Microsoft Xbox 360 Video Game Console scratching disks.

After many complaints about "general failure errors" Microsoft announced changes to their warranty coverage on July 5, 2007. This increased the standard one year manufacturer's warranty to three years, specifically covering general hardware failures indicated by the three red lights. It is also retroactive to any previously purchased systems; original launch consoles are covered until November 2008. Additionally, any customers who have previously paid for repairs for general hardware failures will be reimbursed in full. It has also been reported that Microsoft will spend over $1 billion repairing Xbox 360s. In addition, Peter Moore stated in his open letter that "to address this issue, and as part of our ongoing work, we have already made certain improvements to the console," indicating future systems received some design improvements.

Sales

The Xbox 360 began production only 69 days before launch. As a result, Microsoft was not able to supply enough systems to meet initial consumer demand in Europe or North America. 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. 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.

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. Microsoft later specified that goal and estimated shipments of 10 million units by the end of 2006, a target it passed by 400,000 units. 5.4 million consoles have been shipped to retailers in the United States and, as of July 18 2007, 420,000 units in Japan. Although the console is a success in the United States and Europe it continues to struggle in Japan, placing third in the market.

During an earnings call in January 2007, Microsoft's CFO downgraded estimated Xbox 360 sales for the first half of 2007. 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.

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. However, Microsoft expects the console will start making money in 2008. This is due to a 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.

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.

Notes

1. On included video cable. The Elite and Pro SKUs come with the Component HD AV cable, and the Core SKU comes with the Composite AV Cable.
2. The Elite comes with a separate AV dongle for users using HDMI exclusively for video and who need audio from separate cables.

References

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External links

Official sites

• Official Xbox/Xbox 360 Website
• Gamerscore Blog—Official PR and Marketing Team Blog
• Xbox Development Team Blog
• Xbox Live Video Offerings In HD

• 2005 introductions
• Backward compatible video game consoles
• Xbox 360
• Power Architecture