The 2007 honored the Xbox 360 platform with 38 Nominations and 11 Wins. By March 2008, the Xbox 360 had reached a software of 7.5 games per console—a record for any console in history.
Six games were initially available in Japan, while eagerly anticipated titles such as and were released in the weeks following the console's launch. Games targeted specifically for the region, such as , , and , were also released in the console's first year. Microsoft also had the support of Japanese developer , founded by creator . Mistwalker's first game, , was released in 2006 and had a limited-edition bundle which sold out quickly with over 10,000 pre-orders. is one of three Xbox 360 games to surpass 200,000 units in Japan, along with and . Mistwalker's second game, also sold over 100,000 copies.
The Xbox 360 launched with 14 in North America and 13 in Europe. The console's best-selling game for 2005, , sold over a million copies. Five other games sold over a million copies in the console's first year on the market: , , , , and . would become the best-selling game on the console with 3 million copies in 2006, before being surpassed in 2007 by with over 8 million copies.
Since these problems surfaced, Microsoft has attempted to modify the console to improve its reliability. Modifications include a reduction in the number, size, and placement of components, the addition of dabs of epoxy on the corners and edges of the CPU and GPU as glue to prevent movement relative to the board during heat expansion, and a second GPU heatsink to dissipate more heat. With the release of the redesigned Xbox 360 S, the warranty for the newer models does not include the three-year extended coverage for "General Hardware Failures". The newer Xbox 360 S model indicates system overheating when the console's power button begins to flash red, unlike previous models where the first and third quadrant of the ring would light up red around the power button if overheating occurred. The system will then warn the user of imminent system shutdown until the system has cooled, whereas a flashing power button that alternates between green and red is an indication of a "General Hardware Failure" unlike older models where three of the quadrants would light up red.