Does Xbox 360 Continue Downloads When Turned Off? Yes in Instant-On Mode, No in Full Shutdown
Yes, but with a catch.
"Turn Off" via Guide / Power Button (Instant-On mode): Console enters **low-power standby**. Active downloads **continue** in background. Power brick light stays orange.
"Turn Off" via Holding Power Button (10 sec) / Power Strip / Unplug: **Full shutdown**. Downloads **pause** and resume on next boot.
Background Downloads Setting: Settings → System → Console Settings → **Background Downloads: ON** (default). Required for standby downloads.
How to Ensure It Works
Set **Power Mode: Instant-On** (Settings → Power & Startup → Power Mode).