Microsoft's retail strategy involves two different configurations of the Xbox 360: the Xbox 360 SKU, frequently referred to as the Xbox 360 Premium Package and an Xbox 360 Core System SKU.
At launch, the Xbox 360 was priced at US$399 and the Core System was priced at US$299.
With the launch of the Xbox 360, 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.
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.
On November 6, 2006, Microsoft announced Xbox Live Video, an exclusive video store accessible through the console. Launched on November 22, 2006, the first anniversary of the Xbox 360 launch, the service allows users to download high-definition and standard-definition television shows and movies through Xbox Live onto an Xbox 360 console for viewing.
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.
Updated emulation profiles can be obtained through Xbox Live, by burning a CD with profiles downloaded from Xbox.com, or by ordering an update disc from Microsoft.
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.
E3 2006 was the first large-scale show after the console's launch and there, the first trailer for Halo 3, the third game in the flagship Xbox series of shooters, was premiered. 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.
The Xbox CPU also contains ROM storing Microsoft private encrypted keys, used to decrypt game data.
While the first Xbox's graphics processing unit was produced by NVIDIA, the Xbox 360 uses a chip designed by ATI called Xenos.
The Xbox 360 controller is significantly different from the original Xbox controllers, the Duke and the S models. The black and white buttons have been replaced by bumper buttons, which are on the shoulder of the controller, right before the triggers. It is noticeably smoother, has a white-gray theme, and is very small and ergonomically built.