In a blog post, Xbox boss Phil Spencer said gamers had completed more than 78 billion hours of play on the devices.
Last year the firm enabled Xbox 360 games to work on its successor, the Xbox One.
Mr Spencer said all remaining Xbox 360 consoles would still be sold, and the platform would continue to be supported for existing users.
“I am incredibly proud of all of the work and dedication that went into development of the Xbox 360 hardware, services and games portfolio over the last decade. And I’m grateful to the fans for their continued passion and support,” he wrote.
“While we’ve had an amazing run, the realities of manufacturing a product over a decade old are starting to creep up on us.”