I want to know the specs to create Xbox-friendly video.

According to specs for the 360 here, here's what I can find out, that I want and would encode to:

  • MP4
  • H.264
  • High 4.1
  • 480p30
  • Stereo AAC
  • Embedded artwork at a max of 512k

Assuming the playback software is very picky, I wouldn't add chapters.

With that in mind, here's the simplest HandBrake encoding I'd use:

HandBrakeCLI -i source.mp4 --optimize --encoder x264 --encoder-profile high --encoder-level 4.1 --detelecine --encoder-preset slow --audio 1 --aencoder fdk_aac -s none --no-markers --cfr --rate 30 --quality 23 --stop-at duration:10 -o title.h264.4.1.slow.aac.nosub.nochap.noart.480p30.q23.mp4

And then add tuning for animation or film.