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The name Xbox 360 is supposed to reflect that it was designed to be the "center of your entertainment experience", by playing games, connecting to Windows PC's to retrieve media, playing DVD's and the now-defunct HD-DVD. This is coming more into fruition over time as they add integration for things like Netflix, Twitter and ESPN. Therefore, the 360 is referring to 360 degrees of a circle, which correlates to the description of "center of your entertainment experience".

Some also argue that it was a way to integrate a "3" into the title to subliminally suggest it's ability to compete with the unreleased PlayStation 3 and sort of put them neck in neck with each other, since Sony being on their third iteration suggests that they have more experience in making consoles. If Xbox went with the simple naming tradition of PlayStation, in order for each iteration to have a long life, Xbox would have to consistently be one generation behind which is undesirable.

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Q: Where did the name Xbox 360 come from?
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