Xbox – Connecting multiple Xbox 360 for multiplayer

The Xbox 360, 250 GB S console has 5 standard USB 2.0 ports. Games like Rockband came with a USB hub that allowed more game controllers to be plugged in. The older models before June 2010 had 3 ports, two in the front and 1 in the back.

Most games are only going to be compatible with up to 4 controllers at most locally.

http://en.wikipedia.org/wiki/Xbox_360

Don't forget... There is a difference between connecting to Wi-Fi and having Internet... Your WiFi network could possibly lose its DNS, or lose Internet Connection... Connecting to the Wi-Fi is just one step of getting onto internet.

Make sure with another device that you can both get onto the Wi-Fi, and that it can browse the internet. If that works, on your Xbox, try to access the internet (not get on live, but browse the Internet).

After that, you know the problem is somewhere between your Xbox 360 and Xbox Live or that you have ports blocked, via a firewall or by ISP provider, or if you did a factory reset of your router recently it maybe the problem. If you haven't touched your router lately, and you are 100% sure, it might be the Xbox Live Server in which you text/call/ask friends or google it and I'm sure millions have complained about it already :)