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— CH. 1 · DEVELOPMENT AND LAUNCH —

Xbox 360

~8 min read · Ch. 1 of 7
7 sections
  • Microsoft unveiled the Xbox 360 on the 12th of May 2005, during a special program titled MTV Presents Xbox: The Next Generation Revealed. This event marked the official introduction of the console to the public eye after years of internal development known by codenames like Xenon and Xbox Next. Planning for the software platform began in February 2003 under the direction of Vice President J Allard. That same month, Microsoft hosted an event in Bellevue, Washington, inviting 400 developers to secure support for the new system. Peter Moore joined the company that month as well, bringing his experience from Sega of America to lead the division.

    The hardware partnership with ATI was solidified on the 12th of August 2003, when they signed a deal to produce the graphics processing unit. This agreement became public knowledge two days later. Before the final launch, engineers utilized Alpha development kits built on Apple's Power Mac G5 hardware because both systems shared the PowerPC architecture. IBM developed the cores of the Xenon processor using a modified version of the PlayStation 3 Cell Processor PPE architecture. David Shippy and Mickie Phipps, employees at IBM, reportedly kept their work hidden from Sony and Toshiba during this period.

    Commercial availability arrived in waves across the globe starting the 22nd of November 2005, when the United States and Canada received the first units. Europe followed on the 2nd of December 2005, while Japan got its shipment on the 10th of December 2005. The console launched in 36 countries within its first year, setting a record for any other console launching in a single year. Microsoft began production only 69 days before the official launch date on the 14th of September 2005. This tight timeline meant supply could not meet initial demand in North America or Europe.

  • The original Xbox 360 featured a matte white finish known as Arctic Chill or a black option with slight double concavity. A port sat on top when placed vertically to attach a custom hard disk drive unit. Technical specifications included a triple-core IBM designed Xenon CPU capable of processing six threads simultaneously. Graphics were handled by the ATI Xenos chip containing 10 MB of eDRAM. The main memory pool started at 256 MB but was increased to 512 MB after Epic Games demonstrated better performance potential.

    Mark Rein, Executive Vice President of Epic Games, recalled calling Microsoft's chief financial officer during a conversation about the memory upgrade. He stated that the decision cost Microsoft one billion dollars but did a favor for a billion gamers. Various hard drives became available over time including sizes like 20, 60, 120, 250, 320, and 500 GB. Accessories ranged from wired controllers to wireless options and headsets for chatting.

    Microsoft released two major hardware revisions to address reliability issues. The Xbox 360 S arrived in 2010 with a smaller streamlined appearance and an angular case. This model utilized a redesigned motherboard to alleviate overheating problems found in prior versions. It also added a proprietary port for the Kinect sensor. The Xbox 360 E followed in 2013 as a further variation featuring a two-tone rectangular case inspired by the Xbox One design.

  • Users reported high failure rates shortly after the console's release in 2005. A specific error known as the Red Ring of Death appeared on all models before the Xbox 360 S. This General Hardware Failure manifested as three quadrants of the ring around the power button flashing red. To assist customers, Microsoft extended the manufacturer warranty to three years for these specific errors.

    In April 2009, the warranty extension expanded to cover failures related to the E74 error code. Engineers modified the console to improve reliability through several methods. They reduced the number and size of components and changed their placement. Dabs of epoxy were applied to the corners and edges of the CPU and GPU to act as glue preventing movement during heat expansion. A second GPU heatsink was added to dissipate more heat effectively.

    Redesigns like the Xbox 360 S removed the need for the three-year extended coverage for General Hardware Failures. Newer models indicated system overheating when the power button began to flash red instead of showing three lit quadrants. The system warned users of imminent shutdown until cooling occurred. A flashing power button alternating between green and red signaled a General Hardware Failure unlike older models where only three quadrants would light up.

  • Microsoft shut down its online gaming service Xbox Live for 24 hours upon release to perform a major upgrade. This update added a basic non-subscription service called Xbox Live Silver which later became known as Xbox Live Free. Premium subscription-based services retained the name Gold but required an annual cost of US$59.99 or £39.99 depending on region. Users could create profiles, join message boards, and access the Marketplace without paying fees.

    A Live Free account generally did not support multiplayer gaming except in games with limited online functions. Voice chat features were possible through the Xbox Live Vision peripheral. By the 5th of January 2011, Xbox Live had surpassed 30 million subscribers. The service allowed users to download games through Xbox Live Arcade and purchase content via Microsoft Points.

    The Xbox Live Marketplace served as a virtual store for downloading trailers, demos, themes, and add-on game content. Items were purchased using Microsoft Points available in denominations like 1,600 and 4,000 points. An estimated 70 percent of users downloaded items from this marketplace before it closed on the 29th of July 2024. The platform enabled streaming media including music, television programs, and films through dedicated portals.

  • Lifetime sales figures show the United States reached 42.7 million units sold by the end of the console's lifecycle. Europe recorded 13.7 million units including UK sales which totaled 9 million. Japan saw 1.62 million lifetime sales despite initial struggles compared to domestic rivals. Worldwide total sales reached 84 million units making it the ninth-highest-selling home video game console in history.

    Microsoft shipped 1.5 million units by year-end 2005 with 900,000 going to North America and 500,000 to Europe. In May 2008, they announced that 10 million consoles had been sold marking the first current generation gaming console to surpass that figure in the US. Sales leadership shifted when the Wii surpassed the Xbox 360 in June 2008 but regained the top spot by late 2014.

    The UK market took 110 weeks to reach 2 million units generating £507m in revenue. By January 2009, UK sales hit 3.2 million units according to GfK Chart-Track data. The 8 million unit mark was crossed in February 2013. Over 1 million units were sold in Spain across the entire lifecycle. Despite poor performance in Japan, the console outsold both PlayStation 3 and Wii during specific weeks ending the 14th of September 2008.

  • North America launched with 14 games while Europe received 13 titles on day one. Call of Duty 2 became the best-selling game for 2005 selling over a million copies. Five other games exceeded one million copies in the first year including Ghost Recon Advanced Warfighter and The Elder Scrolls IV: Oblivion. Gears of War emerged as the best-selling game on the console with 3 million copies in 2006 before Halo 3 surpassed it with over 8 million copies in 2007.

    Japan saw six initial games released alongside titles like Dead or Alive 4 and Enchanted Arms. Microsoft partnered with Mistwalker founded by Final Fantasy creator Hironobu Sakaguchi. Their first game Blue Dragon released in 2006 had a limited-edition bundle that sold out quickly with over 10,000 pre-orders. Three Xbox 360 games surpassed 200,000 units in Japan including Tales of Vesperia and Star Ocean: The Last Hope.

    Game releases began declining around 2015 as publishers shifted focus to the Xbox One. Just Dance 2019 served as the last official release on the 23rd of October 2018, in North America. The platform received 38 nominations and 11 wins at the 2007 Game Critics Awards. By March 2008, software attach rates reached 7.5 games per console in the US compared to 3.8 for PS3.

  • The console supported videos in Windows Media Video format including high-definition PlaysForSure content. A December 2007 dashboard update added support for MPEG-4 ASP format playback. Users could display pictures and perform slideshows while playing music through an interactive visual synthesizer accessible via the Guide button. Music files played from standard USB mass storage devices or proprietary hard drives.

    Microsoft announced IPTV services would become available during holiday seasons starting in 2007. Partnerships formed with BT in the United Kingdom allowing access to BT Vision advanced TV service. AT&T's U-verse IPTV service enabled consoles to function as set-top boxes later in 2010. Live Event Player released in 2012 allowed streaming of concerts and award shows like the Miss Teen USA pageant.

    Kinect arrived as a controller-free gaming experience first announced on the 1st of June 2009, under Project Natal. The peripheral used gestures and spoken commands to interact without a physical gamepad. It connected to all Xbox 360 models either directly or via USB adapters. Released on the 4th of November 2010, it became the fastest selling consumer electronic device in history.

Common questions

When was the Xbox 360 officially unveiled to the public?

Microsoft unveiled the Xbox 360 on the 12th of May 2005 during a special program titled MTV Presents Xbox: The Next Generation Revealed. This event marked the official introduction of the console after years of internal development known by codenames like Xenon and Xbox Next.

What were the technical specifications of the original Xbox 360 hardware?

The original Xbox 360 featured a triple-core IBM designed Xenon CPU capable of processing six threads simultaneously and an ATI Xenos chip containing 10 MB of eDRAM for graphics. Main memory started at 256 MB but increased to 512 MB after Epic Games demonstrated better performance potential.

How many units did the Xbox 360 sell worldwide throughout its lifecycle?

Worldwide total sales reached 84 million units making it the ninth-highest-selling home video game console in history. United States sales reached 42.7 million units while Europe recorded 13.7 million units including UK sales which totaled 9 million.

Why did the Xbox 360 experience high failure rates shortly after release?

Users reported high failure rates due to a specific error known as the Red Ring of Death that appeared on all models before the Xbox 360 S. Engineers modified the console to improve reliability by reducing component size and applying epoxy dabs to prevent movement during heat expansion.

When was the Kinect peripheral released and what record did it achieve?

Kinect arrived as a controller-free gaming experience first announced on the 1st of June 2009 under Project Natal and released on the 4th of November 2010. It became the fastest selling consumer electronic device in history upon launch.