My friend paid my brother money to borrow the Xbox for a set time. After the time was up he said he's going to hold on to the Xbox because my brother owes him money. The agreement was verbal and just consisted of "You'll pay me back? Right?" That was the entire agreement. Should my brother call the police to get his Xbox back?

Unless he took the xbox without your brother's permission I can't imagine why the Police would get involved in this.

Your brother can always file in Small Claims Court.

Or call the Police and see what they say - but I think I already know.

How old are the parties here? But Judy is right, the police won't get involved unless he claims that the XBox was stolen and that can get him in trouble for filing a false police report.

Either go to court or work it out.