As of July 29, 2024, you will no longer be able to buy games from the Xbox 360 Marketplace. Microsoft wrote out a very long blog entry to say what I said in a single sentence.
Backwards compatibility will still work. You can buy games that are on the modern store. You will no longer be able to buy games exclusively for the Xbox 360. Use my Daytona USA video as an example; the game is now delisted.
This is an early prototype of what to expect in 2024.
The “Microsoft Movies & TV” app will no longer function on Xbox 360, which means TV and movie content will no longer be viewable on your Xbox 360 after July 29, 2024. You can watch video content on a modern Xbox or Windows 10/11 computer.
You can still play your downloaded games. They do not reach out for validation before play, so enjoy. Multiplayer will also work, as along as the publisher maintains the servers.
You can get more information on the FAQ.
The Digital Age
We might as well embrase the digital age. Most game discs today are little more than licenses for the games. I prefer physical for retro games, but I also have a basement full of games.
One thing to consider is, “what happens to these games when I die?” Can my kids incorporate them into their accounts?