This paper tells that the Xbox 360 is the seventh generation of video game consoles from Microsoft. It is the second game console from Microsoft, succeeding the successful Xbox. It was first unveiled in May 2005 on MTV and then details about its configuration and other specifics revealed at the Electronic Entertainment Expo (E3), the annual video game conference and show, held at the Los Angeles Convention center. It was officially launched in the United States in November 2005, and also had a worldwide release towards the end of the year. In the current gaming console market, Xbox 360 has competitors in the form of Sonys PlayStation 3 and Nintendos Wii. Although, it faced some technical problems in the initial phase of the launch, Microsoft has announced that the present Xbox 360 is merely ‘mid-cycle’ and is set to remain as MS’s mainstream console for ‘at least another five years. Thus, it has become crucial for Microsoft to optimally manage all the issues including marketing issues surrounding Xbox 360 for some more time. Xbox 360’s main strength lies in its integration of next-generation technologies and features including motion and even voice-sensing Kinect, access to the online gaming community and even media content in the form of streaming services, High Definition technology, etc. With Xbox 360 offering optimal media related features and services, it is being viewed as a potential buyer by a wider section of the customer base, apart from the gamers, or who want to buy it only for gaming. Sales are not on expected lines in Europe and Asia. Strategy Analytics says that Xbox 360s relative weakness in Europe and Asia acts as a drag on its global performance.