While a standard ISO is a literal copy of the entire disc, an "XISO" or "extracted" image often strips away this padding to save storage space. The Evolution of Usage: From Backups to Emulation How to Convert Xbox 360 Games into ISO Files
The .xex file is the Xbox 360 equivalent of a .exe file on Windows. Modders often use software to open an ISO and extract the raw contents. This separates the game files from the disc image, allowing users to modify game assets (mods), patch executables, or remove "padding" data to save space. games xbox 360 iso