How Xbox 360 Works

Microsoft's first video game console, the Xbox, sold more than 20 million units worldwide since it was introduced in 2001. Despite the Xbox's impressive power, the list of big-name video game titles to support it and the success of the Xbox's online component, Xbox Live, the console was still outsold considerably by Sony's PlayStation 2.

As the game industry moves toward the next generation of video game technology, Microsoft wants to make sure it dethrones Sony's PlayStation. Enter the Xbox 360.

Photo courtesy Microsoft Corp.
Xbox 360


Microsoft has rebuilt the Xbox from the ground up. From the name to the look to hardware and features, the Xbox 360 is a radically different and more powerful machine than its predecessor. Far more than a video game console, the Xbox 360 is a total media center that allows users to play, network, rip, stream and download all types of media, including high-definition movies, music, digital pictures and game content.

In this article, we will learn about the hardware and features that make the Xbox 360 a leap forward into the next generation of gaming consoles.

Microsoft released two versions of the Xbox 360 in November 2005: the Xbox 360 Premium Package and Xbox 360 Core System. The Core System is "plug and play" -- in addition to the console, it includes a wired controller and an AV cable. The Xbox 360 Premium Package comes with a wireless controller, an HD AV cable, an Ethernet connectivity cable, a headset and a removable 20-GB hard drive. Initially it also included a DVD remote, but this is no longer available as part of a package.

Because of delays in manufacturing, there were not enough Xbox 360s to meet the demand of the 2005 holiday season. As a result, Xbox 360s were selling for as much as $2,000 on sites like eBay and initial sales figures were poor. However, Microsoft still got a jump on its competitors, as the PlayStation 3 and the Nintendo Wii did not release until 2006.

The Xbox 360, like all video game consoles, is just a computer with hardware and software dedicated to the function of running video game software. The original Xbox was in essence a Windows PC with a modified Pentium III processor, some relatively powerful graphics and audio hardware and a modified version of the Microsoft operating system Windows 2000, all packaged in that distinctive black box. The Xbox 360 is also a specially packaged computer, but once you look inside, you realize that this console has quite a bit under the hood.