Update: Microsoft says the article on its support site announcing the Xbox 360 store would be closing in May was "posted in error."
Shortly after the publication of the original story below, Microsoft issued a statement (via Gematsu (opens in new tab)) clearing things up.
"This message was posted in error and we can confirm the Xbox 360 marketplace will not close in May 2023." The statement adds a reminder that "a limited set of games, add-ons, and in-game content" are being removed from the 360 store in some markets.
Microsoft appears to be shutting down the Xbox 360 store in its entirety in May 2023.
As the ever-watchful eye of Resetera (opens in new tab) noticed, heading to Xbox's support website (opens in new tab) and entering 'Xbox 360 marketplace' yields several results, and if you scroll down just a bit you should see two articles titled 'Xbox 360 Marketplace update' with a subhead that clearly reads:
"We will be closing the Xbox 360 Marketplace over the next year, so we encourage you to purchase any 360 games or DLC by May 2023."
If you try to open either of these articles, it opens up an article that was flagged earlier today on social media and which revealed the removal of dozens of games from the 360 store. The article makes no mention of this broader plan to take down the entire store, but Microsoft's verbiage in the subhead leaves little room for interpretation. It sounds like the title and subhead of a future article might've been published early by mistake and we're now getting an early peak at Xbox's big picture for the 360 store.
Judging from the games we already know for sure are leaving the store, it looks like Xbox could be taking games from the marketplace in batches. In either case, if there's an Xbox 360 game you've had your eye on and you don't like physical discs (or it's not available physically), now's the time to update your credit card info on the 360 store (opens in new tab) and grab it.
Not to make this sound too much like an 'in memoriam', but here are the best Xbox 360 games of all time.