Xbox 360 is much smaller than its predecessor--it measures approximately 3.3 by 12.2 by 10.2 inches and weighs 7.7 lbs. It's powered by custom IBM PowerPC-based CPU with three symmetrical cores each running at 3.2 GHz. It also carries a custom ATI graphics processor with 10 MB of embedded DRAM. This is powerful enough to draw 500 million triangles per second. In other words, it makes for great looking games on standard TVs, and even better looking ones on HDTV sets thanks to built-in support for HDTV (720p/1080i/1080p) resolutions.

The unit has a 12x dual-layer DVD-ROM drive, which plays both the game media and progressive-scan DVD movies right out of the box (the optional Media Remote is sold separately). For game-save and media storage, users can choose between 64MB flash Memory Unit, or a detachable and upgradeable 20GB hard drive (sold separately). Along with storing files, the hard drive will make the Xbox 360 backward-compatible with part of the existing Xbox game library.

Xbox 360 uses a refined button layout for its controllers. Back and Start buttons sit at the center of the controller and between them is a new Xbox Guide button, which instantly takes the user to the Xbox 360 user "Dashboard" interface. From there, they can check for friends online, access personal digital content like photos songs, and more. The black and white buttons of the first Xbox controllers have been replaced with new shoulder buttons placed above the left and right triggers. The Xbox 360 can accommodate up to four wireless controllers and has three USB 2.0 slots to use for wired controllers or for streaming your digital media from digital cameras, MP3 players, and any Windows XP-based PC.

All Xbox 360 titles can be played in either standard or high-definition resolution in 16:9 widescreen, with anti-aliasing for smoother graphics. Game designers will be able to take advantage of the system's multi-channel surround sound. The Xbox 360's digital media allows users to supplement any game's music from tracks in their own personal library .