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The Xbox 360 is a home video game console created by Microsoft and released in 2005 to compete with the Playstation 3 and Wii, being a successor to the original Xbox and the second console in the Xbox series. Two Banjo-Kazooie ports, the Xbox Live Arcade ports of Banjo-Kazooie and Banjo-Tooie, and a new game, Banjo-Kazooie: Nuts & Bolts were developed for the system, with the latter later receiving L.O.G.'s Lost Challenges as DLC for 400 Microsoft Points.
A racing game, Banjo-Karting, was being developed for the console but was eventually cancelled. Banjo and Kazooie did make a guest appearance in another racing title for the Xbox 360, however, Sonic & Sega All-Stars Racing with Banjo-Kazooie.
- In the menu of Banjo-Kazooie: Nuts & Bolts, a pile of Xbox 360s can be seen on Banjo's bed, being highlighted and zoomed in if the "Multiplayer" option is selected. In the introduction sequence of the game, Kazooie can also be seen playing Hero Klungo Sssavesss Teh World on the console.