Microsoft posted a blog article on how the Xbox 360 is much more than a gaming machine. The take home message is that 40% of Xbox use is non games, which include movies, music, TV shows. Those features along make the thing worth buying, AND it plays games!
Its no reason why its outselling every other console and has an install base of 53 million units, 10 million which have kinetics. Not bad for a 5 year old system.