There are two ways you can watch videos on your Xbox 360:
1. Download video from the Xbox Live Marketplace. Some of these videos are available for free while you may have to pay for others. Microsoft is in control of what videos are available through the Xbox Live Marketplace.
2. Stream videos from your Windows Media Center PC by using your Xbox 360 as a Media Center Extender. You are in control of what videos you want to watch, however there are restrictions on what kind of video you can playback.
The Xbox 360 supports videos in Windows Media Video (WMV) format (including high-definition and PlaysForSure videos), as well as H.264 and MPEG-4 media. The December 2007 dashboard update added support for the playback of MPEG-4 ASP format videos.
But how can we watch these other (mkv, avi, mov, mts, vob, etc) videos on Xbox 360?
You have to convert these videos into the video format the Xbox 360 Media Center Extender can playback. Aunsoft Xbox 360 Converter can do this for you.
Part 1: Convert Various Video Formats to WMV HD for Xbox 360
Step 1: Download, launch the app and add your various videos to convert
Batch conversion is supported on Aunsoft Xbox Converter, so you can add multiple videos to the program to convert by simply clicking “Add” in the menu bar.
Step 2: Choose Xbox 360 as output format
Choose Xbox 360 output format from “Zune/Xbox 360 Device” of “Format” drop-down list. There are three options available in the catalog: Xbox 360 Video – Windows Media Video (*.wmv), Xbox 360 Video (640*480) (*.wmv), Xbox 360 HD Video (*.wmv). In this case, I choose WMV-HD video.
Step 3: Start conversion for Xbox 360
Click “Convert” button to start conversion for your Xbox 360 device. The conversion time depends on your files need to be converted. When the process finishes, you can get converted WMV-HD videos from your output destination folder which you can simply access by clicking “Open” button at the right of “Output” bar.
Part 2: Stream Converted Videos to Xbox 360 with Windows Media Player 11
If you have a PC running Windows XP, you can stream video, music and pictures to your Xbox 360 without having Windows XP Media Center edition. This has been possible without any third party software since Microsoft released Windows Media Player 11.
Surprisingly enough it is actually extremely easy if you have both your Xbox 360 and your PC on the same wireless network. In this how to guide we will show you step by step how to create a media extender out of your Xbox 360.
Things You Will Need
PC Connected to Router
Connection from Xbox 360 to the router, either wired or wirelessly
Step 1: Turn on your Xbox 360 and either have it connected to your wireless network via an Ethernet wire, or via a wireless connection (requires the Xbox 360 Wireless Adaptor to connect wirelessly)
Step 2: Turn on to your pc where you have all your media.
Step 3: Check to see if you have Microsoft Windows Media Player11, you can check this by opening Windows Media Player right clicking > Help > About Windows Media Player If you don't have version 11, you can go to http://update.microsoft.com using Internet Explorer and download the latest version.
Step 4: Once you have the latest version, go back to Windows Media Player, and right click the now playing button and choose “more options”.
Step 5: You will be prompted with an Options window, select the Library tab.
Step 6: Click the button that says “configure sharing”.
Step 7: A Media Sharing window will pop up, click the check box that says “are my media” then a little box will pop up listing devices and computers in your network. Click on your Xbox 360.
Step 8: Once you've done this, click the OK button, you will be taken back to the previous window under the library tab.
Step 9: Click the Monitor Folders button, choose the folders to monitor then click OK. The computer will take a few minutes to find all your media.
Step 10: Next, go to your Xbox360 and on the Dashboard, go to My Xbox, then select whichever type of media you want to stream. To do Video, go to Video Library.
Step 11: You will then be prompted to “Select Source”. At the bottom of the options below “Downloaded Videos, Current Disc and Portable Device” you should see the name of the computer you just set up.
Step 12: Select it, and wait a second and choose the converted WMV HD videos you want to watch!
You have just successfully setup your Windows XP PC to stream videos to your Xbox 360 using Windows Media Player 11!