It does indeed. You can play Halo CE and Halo2 on the Xbox 360 if you have a harddrive installed on the 360. You need to burn off a disc from the Microsoft website that has the necessary emulators for the games and install that on your Xbox 360 (follow the simple instructions that will appear on your screen). It's quite easy and microsoft will be adding further games to the emulator list, so you can play many more Xbox games on the 360n with enhanced graphics. My friends and i had 2 360's on a system link for a Halo and Halo2 multiplayer night, great fun. It was the main reason for me getting a harddrive for my core system.