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Software emulation is achieved with downloadable emulation profiles, which require a hard drive.Not all original Xbox games are supported; the last reported update to the compatibility list was in 2007 and support has since been discontinued for adding new titles.

The new user interface had a navigation system similar to that of Windows Media Center.

It contained a New pop-up/in-game Live Guide, using a redesigned version of the "blades" interface, a tabbed interface that featured five "blades".

In scrolling from left to right, each section would have a different-colored background signifying its own unique area but users also had the option to change all sections to one background color as well.

In 2008 however, when the gaming scene changed dramatically because of the competitions with the Play Station 3 and the Wii, a new Xbox Dashboard titled the New Xbox Experience (NXE) was launched, which features major changes in both the user interface and other functionalities.

Microsoft has also provided the ability to download system software updates from their respective official Xbox website to their PCs and then storage media, from which the update can be installed to the system.

The Xbox 360 game system allows users to download applications that add to the functionality of the dashboard.

Progressive scan is another feature of the DVD output in the Xbox 360 that produces smoother output when playing movies on televisions that support high definition, although using a dedicated DVD player would offer even more features and sound quality.

The Xbox 360 system software includes built in software emulation support for the original Xbox game system.

Every Xbox 360 can play DVD movies out of the box using the built-in DVD drive, with no additional parts necessary, although the user may control everything with an optional remote.

There are other improvements to the experience on the Xbox 360 over the original Xbox too, including the ability to upscale the image so it will look better.

Two years later, Microsoft launched a new dashboard set for the release of the Microsoft Kinect, adding a fresh new user interface with a touch of silver, but in late 2011 a system update again came with a complete new user interface with a Metro-style design inspired by Windows Phone.

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