The XDK includes libraries, a compiler, and various tools used to create software for the Xbox.

The XDK also includes a tool to record in-game footage, which has been widely used to create high-quality screenshots and trailers.

The XDK allows software creators to create, run and distribute applications on the Xbox platform.

Bundled with XDKs is the Xbox 360 SDK used to connect to the console, enable memory editing, file management, and integrate to Visual Studio 2010 for Xbox 360 game development.

Because of the constraints on the hardware and environment of the Xbox, all software development for the Xbox (and all video game consoles systems in general) are focused on reserving the limited resources that exist, the main limitation of which is the amount of available RAM.