Xbox Music Mixer was announced at E3 in 2003 as part of a 'Digital Entertainment Lifestyle' initiative, with expectations that the software would lead the console towards functionality as an all-in-one media centre.

Upon release, the software received negative reception, with reviewers observing compatibility and usability issues and limitations to the game's karaoke features.

The announcement was part of the release of a series updates to the Xbox under the 'Digital Entertainment Lifestyle' brand, aimed at expanding the functionality of the console.

[2] The software was released amid high expectations that upgrades to the Xbox would pivot the console into a "media center...at the centre of home entertainment".

[14] Similarly, Tom Bramwell of Eurogamer faulted the software's "obtuse" and "unhelpfully designed" user interface, faulting the game's "horrible list visuals, chunky buttons to press and a bizarre lack of widescreen support", stating "you're quickly reminded why PCs are better for organising huge numbers of disparate files than console applications.

[11] Hilary Goldstein of IGN also observed technical issues, stating "even with the music turned all the way down...my voice was still barely audible from the TV.

"[13] Similarly, Tom Bramwell of Eurogamer stated the feature was a "poor offering" compared to karaoke machines, finding the limited number of tracks to be an "insult".