The xbox uses a 2048 bit RSA encrypted key that MS personally takes care of. There are two keys, A public key and a private key. The private key would most likely take about 2 million years to decipher.
there is a lot more, I will try to find a link. This is just going on what I remember.
here is something funny too: According to RSA company, it would take a million Pentium 500MHz computers 100 billion (1011) years to run through all the possible solutions of a 1640-bit key. A 2048 bit key would be exponentially harder to crack.