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I'm thinking about doing things in XNA because I really like C# but I'm wondering about the whole Xbox 360 Development. How good exactly good will the hardware be, also I heard that the games are optimized for the hardware would that apply for XNA games?

As a side question does anyone know if you can release a XNA game in the XBLA?

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Woah, you are asking several very complex questions in the span of about 3 sentences. Do you have a particular example of where you would be uncertain if the Xbox 360 would be too slow? What makes you think whatever you would be doing would be too much? Have you done any research into the Xbox 360 hardware specifications, or any research into whether or not what you are asking has been done? A quick Google search got me this – kurtzbot Nov 6 '12 at 0:46
This post seems to be in the direction you are getting at as it explains some of the limitations and expectations of developing with XNA on the XBox 360:… – kurtzbot Nov 6 '12 at 0:54

Well, besides the comment-answers, the 360 is powerful enough for whatever you want to do as long as you do it well. XNA is not truly optimized for the hardware but it does a pretty good job. And, yes you can release an XNA game to the XBLA provided you have a license with microsoft (which costs upwards of tens of thousands of dollars possibly). Most XNA games are released on the XBLIG (Indie games) channel.

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