The Xbox 360 sold much better than its predecessor, and although not the best-selling console of the seventh-generation, it is regarded as a success since it strengthened Microsoft as a major force in the console market at the expense of well-established rivals. The inexpensive Nintendo Wii did sell the most console units but eventually saw a collapse of third-party software support in its later years, and it has been viewed by some as a fad since the succeeding Wii U had a poor debut in 2012. The PlayStation 3 struggled for a time due to being too expensive and initially lacking quality titles, making it far less dominant than its predecessor, the PlayStation 2, and it took until late in the PlayStation 3's lifespan for its sales and game titles to reach parity with the Xbox 360. TechRadar 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".

Why was the 360 considered a market success for Microsoft?