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Launched worldwide across 2005–2006, the Xbox 360 was initially in short supply in many regions, including North America and Europe.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.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 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.Available in free and subscription-based varieties, Xbox Live allows users to: play games online; download games (through Xbox Live Arcade) and game demos; purchase and stream music, television programs, and films through the Xbox Music and Xbox Video portals; and access third-party content services through media streaming applications.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.Tech Radar proclaimed that "Xbox 360 passes the baton as the king of the hill – a position that puts all the more pressure on its successor, Xbox One".