In an unexpected move, Microsoft has rolled out a new dashboard update for the Xbox 360, fixing a lingering visual bug that affected game thumbnails. The update was discovered by Reddit user trackwalker on June 24, 2025, and has since been confirmed by several other Xbox 360 users across the U.S. This quiet update arrives nearly a year after Microsoft officially shut down the Xbox 360 Marketplace on July 29, 2024—making the continued support for the console all the more surprising.
🔧 What the Xbox 360 Dashboard Update Fixes
While the update doesn’t overhaul the console’s interface, it addresses a specific bug that caused image-stretching issues in the dashboard. This problem mostly appeared when inserting a game disc, distorting the game thumbnail previews on the home screen.
Although minor, this fix has been well-received by the remaining Xbox 360 community, many of whom continue to use the console for physical games or offline play.
🛑 The End of the Xbox 360 Marketplace
The update is especially surprising considering it comes after the closure of the Xbox 360 digital storefront. Microsoft had originally announced the shutdown in August 2023, ending nearly two decades of digital support for one of its most iconic systems. Until July 29, 2024, players could still buy Xbox Live Arcade games, indie titles, and full digital releases like Call of Duty: Modern Warfare 2 and Grand Theft Auto IV.
Leading up to the closure, Microsoft and various publishers offered deep discounts on digital Xbox 360 titles, allowing players to build their libraries before the marketplace became inaccessible. Now, anyone wanting to experience many of those classic games must rely on physical copies or prior downloads.
🎮 Why Is Microsoft Still Updating the Xbox 360?
Though the update is small, it underscores Microsoft’s continued commitment to preserving its legacy platforms, even after key services are sunset. The Xbox 360 still has an active user base—particularly in retro gaming communities—and remains a beloved system for its contributions to online gaming and digital distribution.
Whether it’s for offline play, backwards compatibility, or pure nostalgia, many fans are still powering on their Xbox 360s in 2025—and Microsoft seems to have noticed.
📥 How to Get the Update
If your Xbox 360 is connected to the internet:
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Turn on the console and sign in to Xbox Live.
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The update should download and install automatically.
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If not, go to Settings > System > Network Settings and reconnect to Xbox Live manually.
Offline users may still be able to update via USB using files available from Microsoft’s official Xbox support site.
This dashboard update may not be groundbreaking, but it’s a meaningful nod to the longevity and legacy of the Xbox 360. Nearly 20 years after launch, it’s clear that Microsoft hasn’t entirely closed the book on one of gaming’s most influential consoles.
As long as players keep their consoles running, maybe—just maybe—the Xbox 360 still has a few surprises left in it.