Xbox 360

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Xbox 360
Xbox 360 logo
Manufacturer Microsoft
Product family Xbox
Type Video game console
Generation Seventh generation era
First available November 22, 2005 (details)
CPU 3.2 GHz PPC Tri-Core Xenon
GPU 500 MHz ATI Xenos
Media DVD, DVD-DL, CD,
Add-On: HD DVD (discontinued)
System storage 20 or 120 GB hard drive, 64, 256 or 512 MB memory cards
Controller input 4 maximum (wired or wireless or combination of either)
Connectivity 3 × USB 2.0, IR port, 100 Mbit Ethernet
Online service Xbox Live
Units sold Worldwide: 19 million (as of April 25, 2008)[1] (details)
Best-selling game Halo 3, 8.1 million (as of January 3, 2008)[2]
Backward
compatibility		 465 original Xbox games (requires hard drive and the latest update)
Predecessor Xbox

The Xbox 360 is the second video game console produced by Microsoft, and was developed in cooperation with IBM, ATI, and SiS. The integrated Xbox Live service allows players to compete online and download content such as arcade games, game demos, trailers, TV shows, and movies. The Xbox 360 is the successor to the Xbox, and competes with the PlayStation 3 by Sony and the Wii by Nintendo as part of the seventh generation of video game consoles.

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 (E3). The console sold out completely at release (with the exception of Japan) and, as of February 22, 2008.[3][4][5], 18 million units have been sold worldwide according to Microsoft. The Xbox 360 comes in three different versions, the "Arcade" console, the "Premium" console, and the "Elite" console, each having its own selection of included and available accessories. Another version of the Xbox 360, called the "Core" which was available from launch, has since been discontinued for retail and replaced with the "Arcade".

Contents

Overview

Development

Known during development as Xenon, Xbox 2, Xbox FS,[6] Xbox Next, or NextBox, the Xbox 360 was conceived in early 2003.[7] In February 2003, planning for the Xenon software platform began, and was headed by Microsoft vice president J Allard.[7] That month, Microsoft held an event for 400 developers in Bellevue, Washington, to recruit support for the system.[7] 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.[8] The following month, IBM agreed to develop the triple-core CPU for the console.[7] 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.

The Xbox 360 has suffered from above average technical issues[9], which has resulted in Microsoft extending the warranty to three years for "general hardware failures".[10]

Launch

Main article: Xbox 360 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 Malaysia, 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,[11] and the Philippines.[12] In its first year on the market, the system launched in 36 countries, more countries than any console has launched in a single year.[13] Due to its early launch, the Xbox 360 had a one-year lead on both of its competitors, Sony's PlayStation 3 and Nintendo's Wii.

Retail configurations

The Xbox 360 is available in three standard variants; the "Xbox 360 Arcade", the "Xbox 360 Premium", and the "Xbox 360 Elite".[14] A discontinued SKU, the "Xbox 360 Core", was replaced by the "Xbox 360 Arcade" in October 2007.[15]

At launch, the Xbox 360 was available in two configurations: the "Xbox 360 Premium" package, priced at US$399, and the "Xbox 360 Core", priced at US$299. The original shipment of the Premium version included a cut-down version of the Media Remote, but this was removed from later shipments. 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.

  • The Xbox 360 Core[16] was an entry level Xbox 360 priced at US$279.99. The "Core" is no longer being sold, being replaced by the Xbox 360 Arcade.[14] It was not originally available in Japan, but was later released on November 2, 2006.[17] The Core system came 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 utilize a separately sold 20 or 120 GB hard drive. Unlike all other SKUs, it shipped with a wired version of the Xbox 360 controller, instead of the wireless version found in other SKUs.

Xbox 360 Arcade
Xbox 360 Arcade
  • The Xbox 360 Arcade,[18] priced at US$279.99,[19] is the replacement for the "Xbox 360 Core".[20] It was publicly revealed (though it was available in stores far earlier)[18] by Microsoft's president of Entertainment Devices division Robbie Bach to the Financial Times on October 18, 2007,[19] and officially announced on October 22, 2007.[15] It includes a wireless controller, 256 MB memory unit, composite AV cable, HDMI 1.2 output, and 5 Xbox Live Arcade titles.[21] The consoles, identified by 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.[22]

  • The Xbox 360, commonly called the Premium or Pro, priced at US$349.99, includes all the features of the Xbox 360 Core and 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 downloaded content, provide compatibility with original Xbox games, and store game data. The included hard drive comes 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. Although the Premium package does include an HDMI 1.2 output, it does not come with HDMI 1.2 cables.[23][24] Starting at the end of September, the newest systems were shipped with the new "Falcon" motherboard. This motherboard includes the new 65-nm CPUs, making them quieter and cooler than the older systems.[25] Holiday 2007 consoles, with packaging labeled "Go Big", were bundled with Ultimate Alliance and Forza Motorsport 2.[26] This bundle has since then been discontinued.[14]

  • The Xbox 360 Elite is the fourth and most expensive variation of the console. It is priced at US$449.99 and includes a 120GB hard drive and a matte black finish. The Elite retail package also includes an HDMI 1.2 cable and a controller and headset that match the system's black finish.[27] The initial release price was US$479.99,[28] C$549.99,[28] £299.99, and AU$729.95. The Elite was released in Europe on August 24, 2007, and Australia on August 30, 2007. Holiday 2007 consoles, with packaging labeled "Go Big", were bundled with Ultimate Alliance and Forza Motorsport 2.[26] This bundle has since then been discontinued.[14] Early Elite models shipped using the Zephyr motherboard, though newer models now use the Falcon 65nm chipset instead. These Elites (and other Xbox 360 models using the Falcon) can be identified from earlier versions by a re-designed power connector and a power supply that runs at 175w. The motherboard layout is also different.

Comparison of features

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

Features Elite Premium Arcade Core (discontinued)
In Production Yes Yes Yes No
Suggested retail price
[As of March 14, 2008]		 US $449.99
GB £259.99
€369.99		 US $349.99
GB £199.99
€269.99		 US $279.99
GB £159.99
€199.99		 US $279.99
GB £199.99
(until discontinuation)
Appearance Matte black, chrome disc drawer Matte white, chrome disc drawer Matte white Matte white
Included storage 120 GB HDD 20 GB HDD 256 MB memory unit No
Controller Matte black, wireless Matte white, wireless Matte white, wireless Matte white, wired
Ethernet cable Yes Yes No No
Xbox 360 Headset Yes, Matte black Yes
(excluding Mexico and New Zealand
where a Media Remote is bundled instead)		 No No
Included audio/video cables/adapters HDMI 1.2 (HD)
Hybrid Component/Composite (HD/SD)
Digital/Analogue audio dongle [29]		 Hybrid Component/Composite (HD/SD) Composite (SD) [30] Composite (SD)
HDMI port Yes Yes
(HDMI port included on Premiums from July 2007 onwards)		 Yes No
Xbox Live membership 1 month Gold trial, Silver 1 month Gold trial, Silver 1 month Gold trial, Silver 1 month Gold trial, Silver
Bundled games Hexic HD Hexic HD
(Included in New Zealand
Viva Pinata
Forza Motorsport 2)		 Xbox Live Arcade compilation disc:
Boom Boom Rocket,
Feeding Frenzy,
Luxor 2,
Pac-Man Championship Edition,
UNO		 Region specific

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 3 Special Edition of the console, released September 16, 2007. It sports a Halo 3 theme on the console, wired headset, and wireless controller. Other than the unique "Spartan green and gold"[31] color scheme, exclusive dashboard theme and downloads, and a HDMI port, its features are identical to that of the Premium system.[32]. It is priced at US$399.99 and £279.99 (the original price of the Xbox 360 Premium).[33]
  • To promote The Simpsons Movie, Microsoft created a specially-designed, yellow Xbox 360 console.[34] 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 consoles were to be given out to winners 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.[35] This edition is limited, as 10 consoles were produced.[35]

Xbox 360 Compatibility with Zune

The Xbox 360 is also compatible with the Zune, which was posted on the Xbox Official Website. You can play media files from the Zune to your Xbox 360 only from an Xbox 360 update available on Xbox Live or from the Xbox 360 Official Website.[36]

Hardware and accessories

Hardware

Main article: Xbox 360 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

Main article: Xbox 360 accessories

Many accessories are available for the console, including both wired and wireless controllers, faceplates for customization, a wireless steering wheel for playing racing games, headsets for chatting, a webcam for video chatting, Dance Mats and Gamercize for exercise, a HD DVD player (now discontinued)[37], three sizes of memory cards, and two sizes of hard drives (120GB and 20GB), among other items, all of which are styled to match the console.

Software

Dashboard

The Xbox 360 dashboard. Showing the new five blades
The Xbox 360 dashboard. Showing the new five blades
See also: Xbox 360 System Software

The Xbox 360's graphical user interface GUI is the Xbox 360 Dashboard; a tabbed interface that features five "Blades" (formerly four blades), and was designed by AKQA. 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 2.0.6690, was made available on April 19, 2008.

Multimedia

The Xbox 360 supports videos in .wmv-format, as well as high-definition .wmv-videos, H.264, MPEG-4, and PlaysForSure WMV videos. The Fall 2007 dashboard update added support for the playback of MPEG-4 ASP format videos.[38] The console can also display pictures and perform slideshows of photo collections with various transition effects, and 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 play music with an interactive visual synthesizer.

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 or Windows XP with Service Pack 2 or higher within the local-area network in streaming mode.[39][40] 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).[41]

In the UK the Xbox 360 will be enabled to download and display BT Vision video content. [42]

Microsoft XNA

Main article: 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. 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. Currently at version 2.0[43]. Originally XNA was released in beta form on August 30, 2006. A second, near feature complete beta version was released on November 1, 2006.[44] The final feature complete version, 1.0, was released on December 11, 2006.[45] 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

Main article: List of Xbox games compatible with Xbox 360

Backward compatibility on the Xbox 360 is achieved through software emulation of the original Xbox. Emulated games are rendered in 720p, 1080i, or 1080p HD resolution with anti-aliasing enabled rather than the Xbox standard of 480p[46] (anti-aliasing is also applied when the output resolution is 480p.) However there are also games that do not perform well in emulation; these often exhibit a lower framerate on the Xbox 360,[47] 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. A full list of backward-compatible games is maintained at the Xbox website.[48]

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 originally 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 though the rate of updates to the backwards compatibility list still continues steadily.[49]

At 2008's CES, Albert Penello, the Xbox 360's group marketing manager, said that "engineering work around bringing out new titles" is "winding down".[50]

Xbox Originals

Main article: List of Xbox Originals

As part of the December 4, 2007 dashboard update, a new feature, called Xbox Originals, was launched allowing users to download original Xbox games directly to their Xbox 360. The games have not been altered in any way, except that any demos and game previews have been stripped out. As of December 2007, all titles are available for 1200 Microsoft Points (US$15) each.[51] Seven games were available from launch: Halo: Combat Evolved, Fable, Crash Bandicoot: The Wrath of Cortex, Psychonauts, Fusion Frenzy, Indigo Prophecy, and Crimson Skies: High Road to Revenge. [52]

Game library

Main article: List of Xbox 360 games

At the 2008 Game Developer Conference, Microsoft announced there would be over 1000 games available for Xbox 360 by the end of the year.[53]. The 2007 Game Critics Awards honoured the Xbox 360 platform with 38 Nominations and 11 Wins - more than any other platform.[54]. 33 Xbox 360 titles have now sold over a million copies.[55]. By March 2008, the Xbox 360 had reached a software attach rate of 7.5 games per console -- a record for any console in history, in EU the rate was 7.0 while its competitors were 3.8 (PS3) and 3.5 (Wii).[56]

The Xbox 360 launched with 14 games in North America and 13 in Europe. The console's best-selling game for 2005, Call of Duty 2, sold over a million copies.[57] Five other games sold as well in the console's first year in the market: Ghost Recon Advanced Warfighter,[58] The Elder Scrolls IV: Oblivion,[59] Dead or Alive 4,[60] Saints Row[61] and Gears of War.[62] Gears of War would become the best-selling game of the console with 3 million units,[63] before being surpassed in 2007 by Halo 3, with 8.1 million units.[2]

Six games were initially offered in Japan, and eagerly anticipated titles such as Dead or Alive 4 and Enchanted Arms were released only a few weeks later.[64] Games more suitable to the region were planned or have since been released, such as Chromehounds, Ninety-Nine Nights, and Phantasy Star Universe.[65] Microsoft also had the support of RPG developer Mistwalker, founded by Final Fantasy creator Hironobu Sakaguchi. Mistwalker's first game, Blue Dragon, was released in 2006 and had a limited-edition bundle which sold out quickly with over 10,000 pre-orders.[66] Blue Dragon became the best-selling Xbox 360 game in the region, with over 200,000 units. Mistwalker's second game, Lost Odyssey also sold over 100,000 copies.[67]

XNA Community

XNA Community is a future feature where Xbox 360 owners can receive community created XNA Creators Club developed games made with Microsoft XNA Game Studio. The games are written, published, and distributed through a community managed portal. XNA Community will be a channel for console videogame delivery over Xbox Live that can be free of royalties, paid-software development kits, publishers or licenses.[68][69]

Xbox Live

Main article: 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 (which was renamed Gold). Xbox Live Silver is free of charge and is included with all SKUs of the console. It allows users to create a user profile, join on message boards, and access Microsoft's Xbox Live Arcade and Marketplace and talk to other members.[70] A Live Silver account does not generally support multiplayer gaming; however, some games that have rather limited online functions already, (such as Viva Pinata) or games that feature their own subscription service (eg. EA Sports games) can be played with a Silver account. Xbox Live also supports voice and video communication, the latter a feature possible with the Xbox Live Vision; an add-on USB web camera designed specifically for the Xbox 360.[71] The Gamercard of a player with a Silver account has a silver trim, rather than gold.

Xbox Live Gold has the same features as Silver and includes integrated online game playing capabilities outside of third-party subscriptions. Microsoft has allowed 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.[72] When users add an Xbox Live enabled profile to their console, they are required 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, NZD 90.00, GB£39.99, or €59.99. As of May 14, 2008, Xbox Live has over 12 million subscribers.[73]

Xbox Live Marketplace

Main article: 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 add-on 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 required to store products purchased from Xbox Live Marketplace.[74] In order to download priced content, users are required to purchase Microsoft Points for use as scrip;[75] though some products (such as trailers) 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.[76] An estimated seventy percent of Xbox Live users have downloaded items from the Marketplace.[77]

Video Store

On November 6, 2006, Microsoft announced the Xbox 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's launch, the service allows users in the United States to download high-definition and standard-definition television shows and movies onto an Xbox 360 console for viewing. 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.[78] Movies are also 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.[79] Television content is offered from MTV, VH1, Comedy Central, Turner Broadcasting, and CBS; and movie content is Warner Bros., Paramount, and Disney, along with other publishers.[80]

After the Spring 2007 update, the following video codecs are 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.

As a late addition to the Fall Xbox 360 update which was launched on the 4 December 2007 25 movies were added to the European Xbox 360 video market place on the 11 December 2007 and cost 250 Microsoft points for the SD version on the movie and 380 Microsoft points for the HD version of the movie.[81]Xbox Live members in Canada featured the ability to go on the Xbox Live Marketplace as of December 10, 2007 with around 30 movies to be downloaded for the same amount of Microsoft Points.

Xbox Live Arcade

Main article: Xbox Live Arcade

Xbox Live Arcade is an online service operated by Microsoft that is used to distribute downloadable 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. The Xbox Live Arcade also features games from other consoles, such as the PlayStation game Castlevania: Symphony of the Night and PC games such as Zuma. The service was first launched on November 3, 2004,[82], 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.[83]

Sales

Region Units sold First available
Canada 736,400 as of February 1, 2008[84] November 22, 2005
United States 10.08 million as of May 1, 2008[85] November 22, 2005
Japan 602,558 as of March 30, 2008[86][87] December 10, 2005
Worldwide 19 million as of April 25, 2008[1] (more...)

The Xbox 360 began production only 69 days before launch.[88][89] As a result, Microsoft was not able to supply enough systems to meet initial consumer demand in Europe or North America.[90] Many potential customers were not able to purchase a console at launch. Forty thousand units appeared on eBay during the initial week of release; this was 10% of the total supply.[91] 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.[92]

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 entered the market.[93] Microsoft later specified that goal and estimated shipments of 10 million units by the end of 2006.[94]

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. 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.[95] On October 4, 2007, soon after the launch of Halo 3, Microsoft stated that Xbox 360 sales had more than doubled compared to the previous average.[96]

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 United States in a 12-day period.[97] The Xbox had sales of 528,000 units for September, while the Wii had sales of 501,000 units.[98]

However, despite these sales figures, Microsoft's gaming division is losing money. Through 2005, the Xbox gaming division had lost over $4 billion.[99] However, Microsoft expects the console will start making money in 2008.[100] The losses are due to the market strategy of selling consoles below cost in order to obtain market saturation and gain profits on software and peripherals that have a much higher profit margin.[101][102] Also notable is that Microsoft has taken a charge of $1 billion dollars on its June 2007 Income Statement to account for the cost of replacing bricked Xbox 360s.[103]

In Europe, the Xbox 360 sold 2 million units in 2006 and 1.9 million in 2007 according to estimates by Electronic Arts.[104][105] In 2007, the Xbox 360 had sold 4.62 million units in the US according to the NPD Group,[106][107][108] and 257,841 in Japan, according to Enterbrain.[109][110] On May 14, 2008, Microsoft announced that 10 million Xbox 360s had been sold and that it was the "first current generation gaming console" to surpass the 10 million figure in the US.[111] In the US, the Xbox 360 has sold 10.08 million units as of May 1, 2008, according to the NPD Group.[85] In Japan, the Xbox 360 has sold 602,558 as of March 30, 2008, according to Famitsu/Enterbrain.[86][87]

On February 13, 2008, Microsoft announced that the Xbox 360 suffered shortages in the US in January 2008, possibly continued into February.[112][113][114] Prior to the release of the NPD Group's video game statistics for January 2008, the Xbox 360 has been in second place behind the Wii in US sales in most months since the Wii and PS3 were released, according to data by the NPD Group.[113]

Technical problems

The Xbox 360 displaying three red lights, indicating a "general failure error" (often referred to as a "red ring of death")
The Xbox 360 displaying three red lights, indicating a "general failure error" (often referred to as a "red ring of death")
Main article: Xbox 360 technical problems

The Xbox 360 can be subject to a number of technical problems. Since the console's release in 2005, the product earned note in the press questioning its reliability and failure rate of the early consoles.[115][116][117]

To aid customers with defective consoles, Microsoft has extended the Xbox 360's manufacturer's warranty to three years for general failure errors. "General Hardware Failure" is recognized by three adjacent quadrants of the ring flashing red. This error is often known as the "Red Ring of Death".[118]

Since these problems surfaced, design modifications have been made to the console to improve reliability. All consoles manufactured after June 2007 have extensive revisions from the earliest units. Modifications include a reduction in the number, size and placement of components, and the addition of dabs of epoxy on the corners and edges of the CPU and GPU, as glue to prevent movement relative to the board during heat expansion,[119] and a second GPU heatsink to dissipate more heat.[120]

External links

Microsoft Portal
Xbox 360 Portal
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