Hello Tuwiligas, welcome to Microsoft Q&A forum.
Xbox Live still works on Xbox 360 in 2025, but creating a new account directly on the console often fails because modern Microsoft accounts use two-step verification, which the Xbox 360 does not fully support.
One way to fix this is to create your account online and then use an app password when signing in on the console. Here are the steps:
- Go to account.microsoft.comon a PC or mobile device and create a Microsoft account.
- After setting up your account, go to account.live.com/proofs/AppPasswordand generate an app password. This is a special password for older devices like the Xbox 360.
- On your Xbox 360, connect to the internet and go to Settings > System > Add New Profile > Join Xbox Live. Enter your Microsoft account email and the app password you created.
If you still see errors, try clearing the system cache (Settings > System > Storage > press Y on the hard drive > Clear System Cache) and make sure your console has the latest update.
If the console is banned, you can check at enforcement.xbox.com.
Please note that the Xbox 360 Marketplace closed in July 2024, so you cannot buy new content. Multiplayer will only work if the game’s servers are still supported by the publisher.
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