Microsoft Corporation
Wireless connections on the Xbox sometimes refuse to accept the Wi-Fi network password entered. Ensure the password matches exactly with that on the home router, remembering that these passwords are case-sensitive. Even after ensuring the passwords are an exact match, some readers report that their Xbox still refuses to connect claiming the password is wrong. This generally indicates the type of network encryption set on the Xbox is incompatible with that of the router. This most commonly happens when the router is set to WPA2-AES. Temporarily turn off Wi-Fi encryption to confirm this is the issue, then adjust settings on both devices to come up with a working combination.
Unable to Communicate with the Home’s Wireless Router
An Xbox 360 will fail to connect to a home wireless router if located too far away from the unit, or if too many obstructions (walls and furniture) are situated in the path between them. Temporarily relocate the Xbox nearby to the router to confirm this issue. Replacing the router with one that has a better signal range or upgrading the router’s Wi-Fi antenna can solve this problem. Installing an external Wi-Fi adapter with a directional antenna on the console also can help.
Network Conflicts With Other Wireless Devices
Some of our readers report that their Xbox 360 connection works well except when other Wi-Fi devices are running on the home network and the Internet. Wireless signal interference can cause Wi-Fi devices to perform sluggishly or lose connection, particularly when running on the 2.4 GHz band. To confirm and avoid this problem, experiment with changing the Wi-Fi channel number or by relocating nearby wireless equipment further away from the console.