Can Xbox 360 Arcade Play Blu-ray? No—DVD Only

No. The Xbox 360 "Arcade" model (the entry-level SKU, 2007–2010) only has a DVD-ROM drive. It cannot read Blu-ray discs.

Xbox 360 Models & Optical Drives

Model	Drive	Blu-ray?	Notes
Xbox 360 Core / Arcade	DVD-ROM (DL support)	❌ No	No HDD (Arcade had 256/512MB internal)
Xbox 360 Pro / Premium	DVD-ROM	❌ No	20/60/120GB HDD
Xbox 360 Elite	DVD-ROM	❌ No	120/250GB HDD, HDMI, black
Xbox 360 S / E (Slim)	DVD-ROM	❌ No	Internal WiFi, no Red Ring. Still DVD only
Xbox One / Series X\|S	Blu-ray (UHD on Series X)	✅ Yes	First Xbox with Blu-ray

Blu-ray launched 2006; 360 launched 2005. Drive cost + licensing (Sony-led BDA) made it impractical
Microsoft backed HD DVD (add-on drive sold separately); lost format war
Games shipped on dual-layer DVDs (8.5 GB); multi-disc for large titles

Use an Xbox One, Series X, or Series S (Series S is digital-only — no disc drive)
Or a dedicated Blu-ray player / PS4 / PS5
Or rip discs (MakeMKV) → stream via Plex/Jellyfin to Xbox Media Player app

The "Arcade" name was reused for the Xbox Live Arcade digital store (see Article 91949)—confusing, but unrelated to the console SKU.

Xbox 360