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This was because the system's Power PC 970 processor running the same Power PC architecture that the Xbox 360 would eventually run under IBM's Xenon processor.The cores of the Xenon processor were developed using a slightly modified version of the Play Station 3's Cell Processor PPE architecture.

The earliest versions of the console suffered from a high failure rate, indicated by the so-called "Red Ring of Death", necessitating an extension of the device's warranty period.Microsoft released two redesigned models of the console: the Xbox 360 S in 2010, As of June 2014, 84 million Xbox 360 consoles have been sold worldwide, making it the sixth-highest-selling video game console in history, and the highest-selling console made by an American company.It competed with Sony's Play Station 3 and Nintendo's Wii as part of the seventh generation of video game consoles.It was officially unveiled on MTV on May 12, 2005, with detailed launch and game information announced later that month at the 2005 E3 expo.Although not the best-selling console of the seventh-generation, the Xbox 360 was deemed by Tech Radar to be the most influential, by emphasizing digital media distribution and online gaming through Xbox Live, and by popularizing game achievement awards.

Five years after the Xbox 360's original debut, the well-received Kinect motion capture camera was released, which set the record of being the fastest selling consumer electronic device in history, and extended the life of the console.According to David Shippy and Mickie Phipps, the IBM employees were "hiding" their work from Sony and Toshiba, IBM's partners in developing the Cell Processor.December 2, 2005, in Europe and December 10, 2005, in Japan.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.Before the launch of the Xbox 360, several Alpha development kits were spotted using Apple's Power Mac G5 hardware.The Xbox 360 features an online service, Xbox Live, which was expanded from its previous iteration on the original Xbox and received regular updates during the console's lifetime.