Microsoft Xbox 360: The end of an era

By Abhishek Baxi

A decade after the launch of the Xbox 360 console, Microsoft announced that the company will end the manufacturing of Xbox 360 hardware units. Last November, the Xbox 360 console turned 10 years old.

In an Xbox Wire post, Phil Spencer, Head of Xbox at Microsoft, wrote:

“Xbox 360 means a lot to everyone in Microsoft. And while we’ve had an amazing run, the realities of manufacturing a product over a decade old are starting to creep up on us. Which is why we have made the decision to stop manufacturing new Xbox 360 consoles. We will continue to sell existing inventory of Xbox 360 consoles, with availability varying by country.”

Evolution of Xbox 360

Released in 2005, the Xbox 360 had a rocky debut due to early technical problems like scratching of discs, bricking due to dashboard updates, and the infamous ‘Red Ring of Death.’ In fact, in 2007, Peter Moore, the Vice President of Microsoft’s Interactive Entertainment Business division published an open letter recognizing the console’s problems, as well as announcing a three-year warranty from the original date of purchase for every Xbox 360 console that experiences the ‘general hardware failure’ indicated by three flashing red LEDs on the console.

Yet, the Xbox 360 went on to become a massive success, selling more than 80 million units and cementing Microsoft’s position in the console space.

The 360 was also the foundation for innovations like the Kinect and system updates and dashboard refreshes based on consumer feedback, and it helped evolve Xbox into a thriving online gaming community.

According to Spencer, the console became a beloved gaming and entertainment hub with over 78 billion gaming hours played, nearly 486 billion Gamerscore on 27 billion achievements, and over 25 billion hours spent in apps over its lifetime.

Microsoft sold 84 million Xbox 360 units till June 2014 before the company stopped reporting Xbox 360 sales because of the launch of its successor, the Xbox One. Its rival, the PlayStation 3, has an official sales count of 83.8 million units, although lifetime sales numbers are debatable. Microsoft launched the Xbox One in November 2013, and an updated version will be released sometime soon.

End of the road

The writing has been on the wall for the Xbox 360 since late last year, after Microsoft introduced backwards compatibility making it possible to play certain 360 games on the Xbox One. Still, a decade long run is pretty good and all tech gadgets are replaced over time. With this move, Microsoft will clearly be focusing on Xbox One which is due an update as early as this year.

The company points out that it will continue to support existing Xbox 360s—both in terms of hardware and software—and Xbox 360 games and accessories will continue to be sold till supplies last in the stores. Xbox 360 owners will continue to receive updates, including for Xbox Live services for multiplayer gaming and parties, as well as to any apps they’ve purchased.

What’s next?

Since 2013, the 360 has played second fiddle to the newer Xbox One, the fact that the console has survived a decade, its hardware unchanged, is remarkable. Yet, it needs to go, and it makes complete sense looking at the trajectory of digital entertainment industry.

And that is why there is no need to panic. The legacy of Xbox 360 will live on. Many Xbox 360 game titles will live on with the Xbox One, and the console is a reminder of Microsoft’s huge bet for the living-room, home entertainment market. Remember, this was the first game console to have a Netflix app in 2008. It was also one of the first consoles to have a significant online functionality and popularized the concept of digital distribution.

Xbox is an important piece for Microsoft. Remember the company’s ‘three screens’ vision, as part of ‘One Windows’ rejig, a few years ago, with the television in your living room being an important fitment into one’s digital lifestyle? With the Universal Windows Platform, the Xbox is a key endpoint delivering universal apps and experiences—especially in gaming and digital entertainment—to one’s living room, along with PCs, tablets, and smartphones.

Microsoft is all-in on the hardware, services, and games portfolio for Xbox, and this expected, yet emotional, step isn’t a death knell as it is made out to be.