Pros: Nice graphics, vast game library available, controller layout,
Cons: Subscription service required to utilize many apps that are free on other devices (netflix, youtube, etc), interface not intuitive
The xbox 360 itself boasts HDMI, VGA, and component connection options for HD output. While it can play DVDs, it does not have Blu-ray capability. That shortcoming is offset by the online gaming, and the ability to stream movies via numerous apps (Netflix, Hulu, Snagfilms, etc). While the streaming works well, it is frustrating that one must subscribe to Xbox Live Gold to take advantage of this feature. My understanding is that both Wii U and PS3 offer this at no additional charge. The addition of the Kinect added motion sensing technology that surpassed that provided by Wii. This has been fun to use in Kinect Adventures and Kinect Sports.
I have my XBox 360 setup with an old school 55" Mitsubishi rear projection CRT HDTV, and a Pioneer Elite receiver. As I alluded to previously, while not the most modern setup, the screen and 5.1 surround sound create a very engaging experience.
Setup was simple, although the menu screens are not the most intuitive. I don't use Windows 8 and I get the impression that the XBox 360 interface is designed to mimic that. Fortunately, the controllers are much more user friendly. Even my kids who range from 5 to 10 years old have no problems manipulating the controllers.
One aspect where the 360 may be showing it's age is in the performance of newer titles. I have noticed that on some of the newer titles such as Kinect Sports 2 and Madden 25 the load times are a bit long and you can even hear the machine seem to ramp up to handle the task at hand. These titles definitely seem to tax the 360 more than some of the older titles. That said, once loaded, the games play very smoothly.
As far as streaming content, the only content I have streamed is via Netflix. The image that streams is far superior to the resolution that I get from Netflix over my LG Blu ray player (which is newer than my 360) despite being on the same network.
While the sun may be setting on this generation of video game systems, when the time comes, the 360 can ride off into the sunset knowing that it overcame some early quality issues and did it's job well. In the meantime, the 360 still offers a lot of gaming and entertainment value.