Does it matter whether the Xbox 360 stand up or down?

The system is designed to work either way, but laying it down has many advantages over standing it up.

First is that it will not overheat as fast.

Second is that when it is standing, it can scratch your discs. Most gaming stored and even Microsoft will tell you that it is better to have it laying down.

While it may look cooler standing up, it is a much more effective system if layed down.