Road to Xbox 360

GameSpot editors sat down for a frank powwow with top Microsoft executives to discuss all aspects of the Xbox 360. Vice president and chief XNA architect J Allard, as well as chief Xbox officer Robbie Bach, reflected on some of the lessons learned from the first Xbox:

Indeed, Allard admits there were mistakes made with the first Xbox. "We didn't get the controller right," he said. "The Live experience wasn't that seamless in the dashboard. We didn't future-proof it enough. If there's one frustration that I look back on in terms of that, you know, really rapid-fire entry into the market, I would say we had a lot of seams that showed."

Bach echoed the sentiment, saying, "We've had our ups and downs. [We've] had some things that have gone well [and] some titles that haven't gone well. Japan, you'd say, was a down. North America was an up. Europe was pretty steady. So, I feel like we've done well."

For more from these interviews, check out our news story

Xbox 360 Inside & Out

By the GameSpot Editors

While it's convenient to draw parallels between the Xbox 360 and the Sega Dreamcast--another white, modular console that launched before its two competitors--that's just a little too easy of a comparison. Yes, the 360 is hitting a fair amount of time before the Revolution and the PlayStation 3, but there isn't any substance in the comparison beyond the superficial similarities.

First and foremost, this is Microsoft. So love it or hate it, the company's got a fair chunk of change in the bank...at least the last time we checked. The success of the original Xbox has everyone on board with what it's doing now. You also can't underestimate the appeal and untapped potential of Xbox Live. The online service has been one of the key reasons Microsoft has had so much success this generation of consoles, and Microsoft is obviously hell-bent on pushing that advantage over the competition, which never really offered as comprehensive a service to gamers. Although the comparison to the Dreamcast is an easy one to make, Microsoft is doing enough things right with the 360 to make sure it won't go the way of Sega's last console. That's not saying it could never happen, but it's highly unlikely the 360 will fail to catch on with the masses.

Hardware, Software, and Services

As a game console, the Xbox 360 comes packing a serious amount of appeal for both gamers and developers. From a development standpoint, game creators are being handed the keys to a powerful piece of machinery that challenges them to try to tap its potential. The powerful hardware, complete with an unprecedented amount of RAM (one of the key things developers always want more of), is as tricked-out as a console has ever been.

The Xbox 360 logo.

Third-party support is shaping up strongly, with just about everyone who developed on the Xbox coming to the party in a big way. Even more significant is that Microsoft has made sure to fill gaps in the stable of third parties that were absent on the Xbox, namely Japanese support, which should help the company both stateside and in Japan. Finally, having someone like Peter Moore around, who was at Sega during the Dreamcast's life, helps quite a bit. Not only is he a smart guy in general, but also he has experience at Sega that will serve him well as Microsoft works to ensure the Xbox 360 finds its stride.

Above and beyond the meat and potatoes of the hardware and software, services like the new incarnation of Xbox Live have a lot to offer 360 owners and developers alike by opening the door to expanded community features, downloadable content, and microtransactions. As far as developers go, the 360 has a lot of potential for new revenue streams. Downloadable content was something we saw flirted with this generation, and, in most cases, it went well. The ability to extend the life of a game you've had for six months or a year adds quite a bit of value to it, especially if you're talking about something like a Halo, which has a huge fan base hungry for more content. The much discussed, but heretofore not implemented, concept of episodic content is also a very real possibility for developers to try. You'll also probably see crazy retail promotions that will let you have microtransactions based around game content or even products in the real world. Hopefully developers won't get too greedy by cluttering up games with product placements or blanketing them with microtransaction offers (although they probably will at some point).

Several Microsoft executives up and down the line have repeatedly stressed that the Xbox 360's strengths will be its hardware platform, software, and services.

Controller Hands-On

A couple of GameSpot staff members, including executive editor Greg Kasavin, were recently on hand at the taping of MTV's Xbox 360 premiere show. Xbox 360 consoles and controllers were available at the event. Greg notes about the controllers:

"As suggested by early rumors, the white and black buttons on the now-familiar Xbox controller are gone and have been replaced with two additional shoulder buttons, making the overall design and form factor of the Xbox 360 controller quite similar to that of the PlayStation 2's Dual Shock 2 pad. The shoulder buttons aren't all identical, however. The Xbox-style analog triggers have been kept intact, but digital buttons have been added on top of them. So if a game requires you to use all four shoulder buttons, you'll be pumping the triggers with your middle fingers while hitting the buttons with your index fingers. The buttons are labeled LB, LT, RB, and RT for left button, left trigger, right button, and right trigger, respectively. The triggers feel as solid as they do on the Xbox. The buttons yielded a light, responsive click."

For more, check out our preview of the Xbox 360 controllers.

Less Hulk, More Bruce Lee

Microsoft put a lot of work into getting just the right look for the Xbox 360. The final design was actually the result of a joint effort between Microsoft's in-house design team, a San Francisco design firm, and another firm from Osaka, Japan. Microsoft conducted color studies and performed market research to find out what a next-generation console should look like. The color studies predicted that consumer electronics will be moving toward a lot of whites, silvers, and glass, and the market surveys said the console shape should be more "organic" and "wild" than the previous Xbox.

The Xbox 360 can stand on its side as well.

The final Xbox 360 design definitely has an organic feel, with its soft curves and seamless face. The chrome media tray and green "ring of light" power button add some nice highlights to remind you there's a powerful game machine hidden inside. Microsoft's J Allard stressed to us that the Xbox team wanted the next Xbox to be "less Hulk, more Bruce Lee," and it looks like the final console shape successfully captures that combination of power and finesse.

The front of the console is extremely clean. Aside from the previously mentioned chrome media tray and power button, it's almost easy to miss the small infrared window and two memory card slots. Since the standard Xbox 360 controller is wireless, there's no need for front controller ports, but the system does have two USB 2.0 ports on the front panel hidden behind a plastic cover. The rear of the system has a third USB 2.0 port, an Ethernet port, and a slot for a small, gum-packet-sized Wi-Fi adapter. At this time, the wireless adapter will be sold separately. The system can stand vertically or horizontally, like the PlayStation 2. The new Xbox will also have interchangeable faceplates for extra customization, just in case you wanted a different color for your system.

Input Devices

As mentioned earlier, the Xbox 360 controllers have been designed to be wireless. The controllers have a similar layout to the Controller S, but the black and white buttons have moved to the shoulder areas. The controller itself is well balanced and has full vibration support. You can get a rechargeable battery pack for the controller that can recharge the batteries "lightning-fast," but you also have the option of plugging the controller into the system via USB to "trickle charge" the controller while you play. The bottom of the controller features an input jack that accepts any standard cell phone headset for voice communication. Best of all, Microsoft has confirmed that you'll be able to turn off your Xbox 360 with the wireless controller. Check out our hands-on preview of the Xbox 360 gamepad for more information.

Microsoft plans to release a video camera device for the 360 that will allow for videoconferencing, as well as add a visual interaction EyeToy-like element to games. Initial offerings could include simple parlor games like video poker chat or video checkers, but the camera might also make it possible for games to let you add your own images to them, like putting your face on a T-shirt or customizing a hero character to look just like you.

While the Xbox 360 will be "video camera ready," the actual camera might not be available until after launch. Allard told us that Microsoft will hold off on the video camera release until there's a "critical mass" of content. "I think it will probably be when we have five or six meaningful games that do interesting things with it. I think that’s the right time to do it. Launch might not be the right time."

We also asked Chris Satchell, the General Manager of XNA at Microsoft if we could possibly connect a USB keyboard to the 360. He told us that, "we will allow you to plug in a USB keyboard. It's very useful for the text entry. What we're not enabling it for, we're not enabling it for gameplay." So the keyboard is a go for text entry, but a no-go for game control.

Storage Media

A removable hard drive is just one of the storage options.

It seems like a whole cottage industry has been built around discussing Xbox 360 media rumors. You'll hear such wonderings as whether the system will have a hard drive, DVD or HD-DVD, or possibly Media Center funtionality, among other things. The current design features a removable 20GB hard drive for game saves, Xbox Live file downloads, and storing pictures, music, and movies. Microsoft has indicated that it can make larger hard drives in the future if there's a demand. Since the hard drive is removable, 360 owners can use it to transfer save games and media over to a friend's house. Memory cards will be 64MB in size, but, as with the original Xbox, most users will only need a memory card to transfer data to a different system, since most people will already have a hard drive for game saves and downloadable content.

The Xbox 360 has a 12x DVD-ROM drive that can read Xbox 360 DVDs and the usual optical media formats, such as DVD-Video, DVD-ROM, DVD-R/RW, DVD+R/RW, CD-DA, CD-ROM, CD-R, CD-RW, WMA CD, MP3 CD, and JPEG Photo CD. You can get files onto the Xbox 360 through the USB ports, or you can take advantage of its Media Center extender capabilities by streaming media over to the box from any Windows PC on your home network. Microsoft will also offer a DVD Media Center remote control accessory that will give you easy access to the system's media player control options.

Road to Xbox 360

J Allard also commented on the vision behind the Xbox 360, as well as the scope of the project, in terms of corporate backing and manpower:

At times waxing metaphorical, Allard described the whole thought process behind the 360. "If you think of Xbox 1 as a painting, we mostly sketched in what we wanted to do. So, in Xenon, what I wanted to do was really set out more like a sculptor would and just marinate in the problem for a little bit...decide what it is, what singular vision we wanted to have to shape."

However, the massive amount of manpower made creating a singular vision no simple task. By Allard's estimate, more than 20,000 personnel are devoting their efforts to the 360 full-time...and not just at Microsoft. "There are close to 4,000 dev kits out there. You have all the agencies that are doing the branding work and your advertising work. You have manufacturing partners. You got ATI and IBM. All the suppliers for all the components go in there."

So Microsoft decided to define that singularity. Said Allard, "We created this integrated approach where the marketing team and the sales teams from all the different regions, the content developers, both third- and first-party, participated in this. We went out. We talked to all the best silicon designers in the world, and we looked at all their road maps. And we made this all converge into a singular vision."

For more from this interview, check out our news story

Processor and Graphics

As rosy as the Xbox 360 sounds, there are obviously some unknowns that could dampen the party. The two main unknowns are cost and backward compatibility. Price has been and will always be one of the great sticking points for any new piece of hardware. The challenge for hardware manufacturers is to find the sweet spot between what consumers will comfortably pay for the latest, greatest console and what price won't cause the manufacturer to go bankrupt. Historically, hardware manufacturers have always sold their consoles at a loss, while making money on software. The trick has always been balance, and we think that's going to hold true for the 360. All the console's components and features don't come cheaply, due to their customized nature, so it's going to be interesting to see how much it retails for.

Microsoft learned from the Xbox that if you want to control the price and performance "destiny" of the console, you have to "own the silicon." As you may remember, Intel and Nvidia provided the silicon for the first Xbox, and Microsoft found that it's much more difficult to achieve cost reductions year after year when your suppliers have prices locked in under contract. Even though a console may offer the same functionality over time, manufacturers reduce production costs over time by incorporating new technology, improving integration, and introducing other cost-cutting measures that help make the hardware more affordable to produce.

The Xbox 360 processor will be based on the IBM PowerPC architecture.

When design work started up on the 360, Microsoft decided it needed to own the actual chip designs instead of simply buying chips from suppliers. Microsoft worked with IBM and ATI to architect the CPU and graphics chip for the next Xbox. Since Microsoft owns the chip designs, it can place its own chip orders with the third-party semiconductor foundries that produce the silicon. Microsoft also decides when it's appropriate to move to a smaller manufacturing process, like going from 90nm to 65nm, to reduce costs.

Avoiding Bottlenecks

As we've seen on the PC side, it's very important to make sure the CPU and GPU are well matched to make sure the system functions at maximum efficiency. If you pair an underpowered CPU with a powerful GPU, the CPU will bottleneck system performance, and all that extra GPU power will go to waste. Microsoft decided early on to go with a multicore CPU design after deciding that a superfast single-core CPU wouldn't be a viable option, since the processor would be difficult to shrink down when the time would come to reduce costs. This shift from single-core to multicore processing is happening right now in the desktop market, as Intel and AMD are just starting to ship dual-core processors this year.

The Xbox 360 will have a custom-designed IBM processor that has three processing cores, each capable of handling two threads, or two separate applications. Six total threads provides a lot of processing power, but it adds to the software complexity, because you now have to manage resources between all the processes. Microsoft has a lot of experience with multithreaded applications, and the company is confident that developing on the processor won't be a problem. It might take developers a while to figure out the most efficient way to use all the threads, but the large number of threads will give programmers a lot of flexibility. The 165-million transistor chip will run at 3.2GHz, and it'll have a vacuum-sealed, water-cooled heat sink to handle heat dissipation.

The Graphics Processor

The new Xbox will have a next-generation ATI graphics chip much more powerful than the current top-of-the-line Radeon X850 desktop graphics chip.

Microsoft will pair the IBM processor with an advanced 500MHz ATI graphics chip. The ATI chip will have "48-way parallel floating-point dynamically-scheduled shader pipelines." Today's PC desktop video cards max out at 16 pipelines, but the technologies aren't quite the same. The new ATI graphics chip will be based on a new unified shader model that processes vertex and pixels through the same multipurpose pipelines. Current PC video cards have pipelines dedicated to pixel processing or vertex processing. ATI's current top-of-the-line Radeon X850 XT PE graphics chip, for example, has 16-pixel pipelines and 6-vertex pipelines. We don't know how these new hybrid pipelines will perform compared to the older, dedicated pipeline designs, but with 48 of 'em, we're betting that the next-gen ATI chip will live up to expectations.

This advanced technology has allowed Microsoft to substantially raise the bar on visual requirements for Xbox 360 games. Next-generation games must support at least 720p HDTV resolution, 5.1 multichannel sound, and full 16:9 widescreen aspect ratio (no letterboxing). Games must also have at least 2x antialiasing to improve image quality. According to Microsoft's Peter Moore, "Jaggies need to be a thing of the past," and there's no doubt the Xbox 360 hardware will be powerful enough to make them so. The graphics chip will also have 10MB of superfast embedded DRAM, which is just large enough to fit in an HD resolution frame buffer with antialiasing.

The Xbox 360 will have 512MB of system memory, which is shared between the CPU and the GPU. However, the graphics will take up much of the space since the HD video requirements mean developers will have to use larger high-resolution textures to give games extra detail. The extra memory also allows for larger game levels for improved gameplay. Sound will be 5.1 out of the box, but since the all the audio is done in software, the Xbox 360 can easily support additional sound channels if games wanted to move up to 6.1 or 7.1-channel output. Check out our Xbox 360 hardware page for a full list of specifications.

How Much?

Microsoft hasn't announced if the Xbox 360 will be backward compatible, but the system is powerful enough to emulate the original Xbox. Microsoft also hasn't discussed pricing or release dates just yet, and the contents of the final retail package are still in a state of flux. When we last spoke with company officials, they told us they're planning a worldwide holiday launch. And right now, the current package includes a 20GB hard drive, the base console, and a single wireless controller. Microsoft hasn't ruled out offering different retail packages just yet. Because the system components are so modular, the company can easily swap accessories in and out of the final package to create an attractive offering. It's very possible we'll see a completely different package after Microsoft gets more feedback on its 360 plans during E3.

It can be difficult even for a console publisher, to get Rockstar's attention.

One of the reasons the Xbox 360 seems poised for success is that developer support is very strong. Microsoft's Peter Moore noted that about 4,000 developer kits for the new console have already been distributed. While many developers, especially Japanese ones, were skeptical of the Xbox when it arrived in 2001, most of the naysayers eventually came on board. The one key thing about the industry now is that the days of seeing the sorts of exclusive deals that helped Nintendo rule the roost back in the day are probably gone for good. The fact that a company like Rockstar would convert its Grand Theft Auto games over to the Xbox speaks to how Microsoft made believers among the development community.

The nature of the video game business for publishers is to reach as many people as possible. Consoles with user bases in the millions can't be ignored. There's been enough excitement in the development community over the current Xbox hardware and the potential of Xbox Live that making the leap to the 360 right now makes smart business sense. The powerful hardware, which MS has made no secret it's aiming to make as developer-friendly as possible, will have a very powerful draw on developers, who are always hungry for more muscle to realize their visions.

Microsoft will be in good shape if they can attract and retain more Japanese developers like Tecmo.

This has ensured a healthy amount of support in the US, but, based on all the announcements that have been made in the months leading up to E3, it appears MS has managed to entice the Japanese development community as well. With support from heavy hitters such as ex-Square motherbrain Hironobu Sakaguchi, who is now with Mistwalker, and ex-Sega visionary Tetsuya Mizuguchi, the 360 is poised to have unique content that should have a strong appeal to the Japanese market and, by default, the US one. By signing developers of that caliber and by retaining close ties with Tecmo's amazing Team Ninja, all signs point to the 360 software library having some great content. This is ultimately all coming about because Microsoft has shown it "gets" what's needed to be a success in the console space and that confidence is picked up on by developers who are eager to throw down with someone who's hungry to make a mark in the industry.

Here are some games that have been announced or are known to be in development on the Xbox 360.

Alan Wake

Developer: Remedy
Publisher: n/a

The maker of the Max Payne series will be bringing this game to the Xbox 360. The screenshots and first trailer show a quiet, eerily idyllic setting in a heavily forested area near the coast.

Blue Dragon

Developer: Mistwalker
Publisher: n/a

Hironobu Sakaguchi and other ex-Square developers are hard at work on a role-playing game for the Xbox 360. Character design will be done by noted illustrator Akira Toriyama. The two previously collaborated on the classic SNES RPG Chrono Trigger, which bodes well for Blue Dragon.

Call of Duty 2

Developer: Infinity Ward
Publisher: Activision

It hasn't been officially announced on the Xbox 360, but sharp-eyed GameSpot editors spied this World War II shooter at the taping of the Xbox 360 premiere event. The PC version of the game will follow the storylines of four different soldiers, as well as offer squad-based combat.

Condemned

Developer: Monolith
Publisher: Sega

This survival horror game from Sega and Monolith will follow Ethan Thomas, an FBI agent in the Serial Crimes Unit (SCU), which is a team of G-men dedicated to tracking down serial killers, Clarice Starling-style. While playing as Thomas, gamers must navigate "urban environments filled with deadly sociopaths who lurk on the periphery of humanity," according to Sega. Sign us up.

Dark Sector

Developer: Digital Extremes
Publisher: n/a

This first-person sci-fi action game is being developed by the same folks that brought you Unreal Championship and Unreal Tournament 2003. The first trailer shows a stealthy alien skulking his way through the halls of a human base or ship.

The Darkness

Developer: Starbreeze Studios.
Publisher: Majesco Games

The developer of the surprise hit, The Chronicles of Riddick, are hard at work on a new action game, which is adapted from a comic book of the same name. Players will take the role of a Mafia hitman named Jackie Estacado who is possessed by strange, mystical powers.

Demonik

Developer: Terminal Reality
Publisher: Majesco Games

Noted horror author Clive Barker teams up with the makers of Bloodrayne to produce this game, which will be based on a horror movie. If the storyline is as compelling as Undying, Barker's last foray into games, then Xbox 360 players should be in for a treat.

Elder Scrolls IV: Oblivion

Developer: Bethesda Softworks
Publisher: 2K Games

The creator of the monstrously epic Daggerfall and Morrowind role-playing games will bring the next iteration in the Elder Scrolls series, Oblivion, to the Xbox 360. The game promises to offer the same open-ended style of gameplay and story advancement as its predecessors.

Full Auto

Developer: Sega
Publisher: Sega

This car combat game hearkens to The Road Warrior and other car combat films and games. Pick a car and outfit it with machine guns, cannons, and other weapons before driving it to battle in the streets of a city called Staunton. Xbox Live support means you can shoot up your friends and their rides too.

Gears of War

Developer: Epic Games
Publisher: MS Game Studios

Probably the most impressive-looking of the first batch of titles revealed for the Xbox 360, Epic Games' Gears of War looks like it's going to be a hard-hitting sci-fi-themed tactical shooter. Featuring a behind-the-back, third-person perspective and an impressive level of detail in the characters and environments, Gears of War has blockbuster sci-fi hit written all over it. We wonder how it'll actually play, though.

Ghost Recon 3

Developer: Ubisoft
Publisher: Ubisoft

If the previous games in the series are any indication, players will lead a team of highly trained and heavily armed special forces units through intense tactical battles in Ubisoft's upcoming shooter.

Kameo: Elements of Power

Developer: Rare, Ltd.
Publisher: Microsoft Game Studios

Originally slated for release on the Xbox, Rare's platformer will instead debut on the Xbox 360. The titular heroine of the game has the ability to magically transform into different monsters, giving her specialized powers to fight off the evil trolls that have invaded her land.

Madden NFL 06

Developer: EA Tiburon
Publisher: EA Sports

This isn't actual in-game footage, but Michael Strahan still looks scary.

An action-packed trailer for the next-generation of Madden NFL games aired on ESPN during the NFL Draft a few weeks ago. The videos and screenshots taken from that trailer are not actual in-game footage, but they should give us a good idea of what to expect from the game as far as camera angles, special effects, and graphical fidelity go.

NBA 2K6

Developer: Visual Concepts
Publisher: 2K Sports

Stunningly realistic visuals demonstrate set our expectations high for the next installment in Visual Concepts' acclaimed basketball series, coming to the Xbox 360.

Need for Speed Most Wanted

Developer: Electronic Arts
Publisher: Electronic Arts

EA's hugely successful street racing series is coming to the Xbox 360, complete with some high-speed, dangerous police chases this time around.

Perfect Dark Zero

Developer: Rare, Ltd.
Publisher: MS Game Studios

Perfect Dark Zero is the sequel to the classic Rare shooter from the Nintendo64. Details on the game were spilled by a clan of female professional gamers, whose members revealed that the game would include spy gadgets and jetpack-like devices.

Project Gotham Racing 3

Developer: MS Game Studios
Publisher: Bizarre Creations

The beloved Xbox racing franchise is officially headed to the Xbox 360. Kudos to whoever made that decision. We can't wait to see how it turns out.

Quake 4

Developer: Raven Software
Publisher: Activision

Like Call of Duty 2, Quake 4 hasn't been specifically announced for the Xbox 360 yet. But the Raven-developed sequel to id Software's classic shooter series was spotted in trailer form at the taping of MTV's Xbox 360 premiere show.

Saint's Row

Developer: THQ
Publisher: THQ

THQ is developing a GTA-style action game for the Xbox 360.

Tiger Woods PGA Tour 06

Developer: EA Sports
Publisher: EA Sports

We're almost frightened to think about how realistic Tiger Woods is going to look in the first Xbox 360 installment in his highly acclaimed golf sim series.

Tomb Raider: Legend

Developer: Crystal Dynamics
Publisher: Eidos Interactive

Lara Croft is back, but you probably already knew that just from hearing the collective swoon of prepubescent boys. In her latest adventure, she'll be platforming through various settings, such as an office building, a mineshaft, and (what else?) a medieval tomb. Also look for her to wield her signature guns akimbo, as well as a rocket launcher.

Tony Hawk's American Wasteland

Developer: Neversoft
Publisher: Activision

American Wasteland will set the Tony Hawk series in one gigantic Los Angeles, free from loading times. The game will also feature BMX biking and online play via Xbox Live.

A Look Back

When Microsoft first launched the Xbox Live service in late 2002, it made some bold, forward-thinking moves that were actually fairly risky at the time. The service was broadband-only at a time when broadband hadn't quite yet penetrated your average household. Microsoft also made the system closed and proprietary, which allowed for voice chat, universal logins, and more-consistent user interfaces. However, it also went against the conventional wisdom of the time, which was to leave each publisher on its own as far as providing online service and matchmaking for games. As the years have passed, most would agree that the Xbox Live model has been very successful, giving Microsoft's online gamers an added sense of community with the unified logins (EA games notwithstanding) and a more consistent overall experience. With the launch of the Xbox 360, Microsoft continues to propel the Xbox Live service forward by adding features that may seem strange or not all that useful at first, but have the potential to carry online gaming and online communities, as a whole, well into the future. It's also taken steps to address a lot of the primary concerns that cropped up with the existing service.

Who Are You? Who Am I?

Details on new Xbox Live features were first released during GDC in March.

One of the primary new features of Xbox Live for the Xbox 360 will be the introduction of gamer profiles. While user names, or "gamertags," are already consistent on the current version of Xbox Live, it's difficult to glean much useful information from them. Where does this person live? What games does he or she play? What's this person's reputation with other online players? The gamer profiles in the new version of Xbox Live promise to more easily answer all these questions about your opponents, as well as let you customize your profiles with an avatar, a motto, and your style of play (aka "gamerzone") so you can give people clues about your personality and whether you're an intense, competitive gamer or one who's more interested in just playing for fun.

Playing Nicely

You won't have to resort to using this to get back at rude players online.

You'll also have the ability to more easily give feedback on other players, which ties in to each person's reputation score on his or her gamer profile. In the current iteration of Xbox Live, you can lodge complaints with administrators by submitting the offending gamertag. But nothing happens until enough legitimate complaints are made about rude players. The new version of Xbox Live promises to be more effective, because you don't have to wait on administrator action to see results. Give an offending player a thumbs-down, and that will hurt his or her reputation score, making it less likely others will play with him or her. But more importantly, the system knows which players you have given poor feedback on. So if you give someone a thumbs-down, you're less likely to be matched up with him or her again. If you give another player a thumbs-up, the system will be more likely to match you up again. Did you forget to write down the name of that jerk who disconnected on you in Madden last night? You don't have to, because the system will record the last couple of hundred players you played with. You can just head into that player history, give a thumbs-down to the plug-puller, and then send a challenge off to the guy who did give you a good match the previous day.

Everything Counts In Large Amounts

You'll be able to easily compare game achievements with any other player online.

What's more, all the games you play on your Xbox 360--online and offline--will be logged and counted toward a numeric ranking, which is your "gamer score." No matter what you play, your progress in Xbox 360 games will translate into points that feed into your gamer score, which will undoubtedly result in a macrolevel competition between Xbox Live players. Individual achievements you accomplish are also viewable through your gamer profile, which will let you show off and also let prospective friends examine what games you're playing and what you're good at. So when you send that Forza Motorsport challenge over to 1337Ricerboi--and after he checks your profile--he'll know that you're the current world lap record holder on the Nürburgring track. Maybe he'll also see on your list of achievements that you've beaten Jade Empire and Knights of the Old Republic II. So during your race, you can argue about which Bioware role-playing game is better.

Matchmaking

Geographical locations of players, self-categorized gamerzones (or playing styles), reputations, and gamer scores are all criteria that can be considered by the matchmaker in the upcoming version of Xbox Live. Having more data to work with, in theory, means you're less likely to be stuck in a match that isn't enjoyable to you. Of course, a lot of the success of the new "intelligent" matchmaker is going to depend on how large the online community is for a given game. If you're looking for a match in Halo 3, the matchmaker will probably have lots of options. But if you're an American fiending for a gritty game of Rugby 2007, you'll probably still have to settle for whoever's available. Still, it's tantalizing to know that hardcore shooter jockeys who spend hours honing their sniper rifle skills are less likely to get stuck on the same server as casual players just looking to let off a bit of steam.

Marketplace and Microtransactions

Imagine customizing and selling your own Sims clothes over Xbox 360.

Matchmaking and community-building features are just two areas that Microsoft has focused on improving for Xbox Live for the Xbox 360. Another interesting addition is what the company is calling the Marketplace. As in the current version of Xbox Live, you'll be able to download new content, such as extra levels, from the Marketplace. Microsoft also envisions the Marketplace as being a source of other smaller bits of content, such as special clothing for player characters or decals and parts for cars to be used in-game. These bits of content could be sold on the cheap, for as little as a few cents. What's more exciting is the possibility that players themselves might be able to design, distribute, and even sell such content themselves.

But who's going to want to pull out a credit card to buy either a 25-cent skin for an Xbox 360 interface or a 10-cent T-shirt for a Tony Hawk character? Microsoft thought of that, too. Unlike the current iteration of Xbox Live, where all transactions require a credit card, the new version of XBL will let you store money, or value, in an account that you can use for purchases. So if you have your credit card handy, you can dump $20 into it once with your credit card, and then you can make a week or more than a week's worth of microtransactions thereafter, snapping up clothes for your sim or snatching new tracks to race on. If you don't have a credit card, you'll be able to buy a card (with cash) from a traditional brick-and-mortar store that you can bring home to recharge for use with your Marketplace account.

Music, Movies, and Demos

Could the pilot model for television end up finding its way into the video game industry?

The Marketplace won't just be restricted to added levels and other bits of small content, though. Microsoft imagines you'll be able to download music and videos, such as game trailers, onto your Xbox 360 through Xbox Live. Even fully playable demos are not out of the question, which opens up a number of interesting possibilities. Since this content may or may not be free, publishers may consider funding small demos of some games for distribution solely over the Xbox Live Marketplace. Microsoft's J Allard likened this to the way television studios fund and release pilot episodes for shows that are considered edgy or risky just to see if they catch the public eye. Let's say a developer approaches a publisher with a quirky idea for a game the publisher thinks has potential. But the game is too risky to gamble millions of dollars on for a full, traditional development and publishing cycle. With the ability to release a small pilot demo over the Xbox Live marketplace, the publisher can test the waters by using less money, and if the proof of concept ends up popular, then the publisher can begin producing the full-fledged game (or even just release episodic content) with greater assurance. Obviously, it remains to be seen if any publisher will actually go this route, but the technology in the new version of Xbox Live will make it a possibility.

And You Thought Your Cell Phone Was A Leash

The 'ring of light' around the Xbox 360 power button will signal waiting messages if you're set to 'Do not disturb.'

The newest iteration of Xbox Live for the Xbox 360 will include enhanced communication options, like "ubiquitous" voice chat. What this means in plain English is that you no longer have to be in the same game session or even in the same game to be able to voice-chat with a friend. You'll be able to send and receive messages and voice chat requests no matter what you're doing on the Xbox. Conceivably, one person could be playing a game while the other could be watching a movie, and both could still chat with each other. Even if you're logged into a four-player split-screen match on one Xbox 360, the system is intelligent enough to send a message request to the correct person on that box (it will illuminate the ring of light on the recipient's controller) so the other three people can continue to play while the social butterfly attends to his messages. Of course, it could get annoying to be constantly receiving pop-up message requests while you're doing stuff. So, like any instant messenger client on a PC, you'll be able to set a "do not disturb" status so that nothing interrupts you in the middle of a Madden game.

Two Levels: Silver and Gold

Two levels of Xbox Live service have been specified for Xbox 360. The silver level is free and actually includes almost all available features. You'll be able to create your gamer profile, browse the profiles of others, add to your gamer score by playing games, buy stuff on the marketplace, engage in voice chat with a friend, and even play massively multiplayer games (assuming you've paid the fees for that game). You just can't play the regular multiplayer games on the silver level. Ponying up the money for the gold level of service lets you play online, and it gives you access to video chat (with the Xbox 360 video camera), special tournaments, and other premium content and activities.

The Analysts' Take

GameSpot's news team interviewed a few prominent industry analysts for their take on the Xbox 360 launch. Here's some of what they had to say--

GameSpot: Gentlemen, from what you know about the next-gen Xbox, are you impressed?

David Cole: Yes, I think they got all the bases covered and I think the system will be very customizable which is a major trend in the game industry, being able to create and control your own experience.
Michael Pachter: Very. The box appears to be incredibly powerful, and I'd guess it will take years for software developers to fully exploit its potential.
Boris Markovich: We believe that being first to market is a significant advantage for Microsoft, just as it was in the last generation for Sony.

For more of this interview, check out our news story

It's not every year that a major new system launches, complete with hype about the hardware, viral marketing campaigns, and a kickoff show on MTV to boot. In this section, several GameSpot editors chime in on the launch of the Xbox 360.

No Caption Provided — The ourcolony marketing campaign took many forms.

The ourcolony marketing campaign took many forms.

The Analysts' Take

GameSpot's news team interviewed a few prominent industry analysts for their take on the Xbox 360 launch. Here's some of what they had to say--

GameSpot: Does being first to launch give the 360 a significant advantage over the next-gen boxes from Sony and Nintendo?

Cole: I would say it evens the playing field as opposed to giving a significant advantage. This is a long-term battle over several years and you can easily see Sony launching a year after MS and catching up within a matter of months. The main thing is it gets developers/publishers on board releasing software so that by the time competing systems come out there is a more robust product lineup. This is how Sega competed with market leader Nintendo on the Genesis and Sony did it with PSOne. In both cases Nintendo caught up quick in terms of overall hardware, but they let the competition build big software libraries that ensured long term sales.

Pachter: Obviously, Microsoft will have 100 percent market share until one of the others launches. Although I expect the next-gen Xbox to end up at around 35 percent market share overall, the head start should ensure that it gains share over last cycle. Sony and Nintendo will be playing catch-up for a few years.

For more of this interview, check out our news story