Development
Known during development as Xenon, Xbox 2, Xbox Next or NextBox, the Xbox 360 was conceived in early 2003.[6] In February 2003, planning for the Xenon software platform began, and was headed by Microsoft VP J Allard.[6] That month, Microsoft held an event for 400 developers in Bellevue, Washington, to recruit support for the system.[6] 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.[7] The following month, IBM signed on to develop the triple-core CPU for the console.[6] Before the launch of the Xbox 360, several alpha development kits were spotted using Apple's PowerMac G5 hardware. Games running on these were reported to be using 25–30% of the actual system's power.[8] Microsoft chose to use these systems for their PowerPC architecture, which is similar to that of the Xenon CPU used in the system. On October 24, 2005, Microsoft shut down Xbox Live for a day to upgrade it for the Xbox 360.[9]
Launch
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 of 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,[10] and the Philippines.[11] In its first year on the market, the system launched in 36 countries, more countries than any console has launched in a single year.[12] 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 Premium', and the Xbox 360 Elite. At launch, the Xbox 360 Premium was priced at US$399 and the Core System was priced at US$299.
BusinessWeek magazine compiled a report that estimates the total cost of components in the premium bundle at US$525 at launch,[13] 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 premium bundle is US$323.30.[14] 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.[15] 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.[16]
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 three configurations include one year warranties, although consoles purchased in Canada and the United States before December 21, 2006 originally had 90 day warranties; later extended to one year.[17]
Each SKU contains different video cables; the core system comes with composite cables, the premium 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 nm manufacturing process (from the current 90 nm) later this year,[18] 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.
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.[21] In Australia and New Zealand and Mexico[22] 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 premium bundle.[23] 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.
Xbox 360 Premium
The Xbox 360 Premium, available at launch, includes all the features of the Xbox 360 Core. The Xbox 360 Premium 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 Xbox 360 Premium 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.[citation needed]
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.[24] 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 case.[25] 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[26] 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[27] and C$549.99.[28]
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.[29] 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.[30]
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.[31] 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, CD$59.99, £39.99, or €59.99. As of December 31, 2006, Xbox Live has over 5 million subscribers.[1]
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.[32] In order to download priced content, users are required to purchase Microsoft Points for use as scrip.[33] 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.[34] An estimated seventy percent of Xbox Live users download items from Marketplace.[35]
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,[36] 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.[37]
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.[38] 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.[39] Content is offered from MTV, VH1, Comedy Central, Turner Broadcasting, CBS for television; and Warner Bros., Paramount for movies along with others.[40]
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.
