Xbox Live: Overpriced

Article Excerpt:

"During a couple of my last posts I had written about how Xbox Live is over priced, but never offered too much of an explanation. I mean the articles where about different topics, but there were numerous comment postings defending XBL. I wanted to lay out my case that Microsoft is clearly over charging for Live and that some of the downloadable content is nothing more then a money grab. That is not to say Sony is innocent with the PSN, but it is easier to forgive them for that. The Playstation Network is free afterall, isn't it?"

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KionicWarlord2223719d ago (Edited 3719d ago ) we go...

Ok let me redirect my comment .....

Obviously no one wants to pay for anything not even xbox live service , but this is how Microsoft wants it to be .

The fee (to me) is more of a nuisance then it is a hassle .

SnuggleBandit3719d ago

Then why not have any nuisance at all? (psn)

N4G king3719d ago

"Xbox Live: Overpriced"

thank you captain obvious

KionicWarlord2223719d ago

Having both is better...cant wait to have both...but i was just saying its a "nuisance" as if to me its not a big deal .

ATY3719d ago (Edited 3719d ago )

"Then why not have any nuisance at all? (psn)"

Because even with the billions in Microsoft profits from their OS and office software funding it, Microsoft's lack of internal hardware design and manufacturing puts them at massive disadvantage both in console manufacturing cost and performance.

The Xbox has racked up some 7 billion in losses over the 7 years its been around. And that is dramatically understating the losses since the Xbox is mixed in with other profitable products to hide the billions in losses.

The 50 dollar a year online fees effectively act as a loan from Microsoft to Xbox owners because they can't sell their console hardware at a competitive cost. So the base price of the Xbox is effectively the down payment with 50 dollar a year installments.

Take away the hundreds of millions a year in online fees and the Xbox would be generating would have been generating losses in the 10-15 billion dollar range.

Talking about is it worth it doesn't make sense. The Xbox project would not exist without the crutch of the 50 dollar a year online fees. They aren't going away. It's almost the 4 year mark for the Xbox 360 and the E&D Division just posted a 31 million dollar loss last quarter. Take away the 50 dollar a year online fees and the E&D division would still be generating hundreds of millions of dollars of losses a year.

Syronicus3719d ago

There are two other platforms that allow me to play online for free. Why pay on one pltform when you can do it free on two others?

tehReaper3719d ago

PSN is a nuisance because it doesn't have the same feeling as LIVE. Simple as that. I'd rather pay a monthly fee to have best of both worlds, instead of being limited to one basic free service. PSN will get better, but it's not what everyone wants.

People pay for Qore because they want something extra(betas, exclusive videos) just like every gold member on LIVE gets and more. While I agree games should be playable online out of the box for 60 bucks, I don't look at it that way when I see everything I get on LIVE.

If I didn't have to pay to play online, I'd still get the golden membership because of all the extra support and features it gets.

Call me brainwashed or whatever, but LIVE is the reason why I see value in the 360.

Greywulf3719d ago

1. Voicemail/VoiceChat/Cross game.
2. Universal Invites.

Yes, theres other fluffy non-game related features, which all services are adding to, Vidzone/netflix etc. but the core game functions aren't worth it anymore.

Fan Tastic3719d ago

It's just that the competition (Sony's PSN Service) is better and it is free. Dedicated serving hubs for the best experience in gaming. Sony is the Alpha and the Omega!

Megaton3719d ago

It's a yearly sucker tax to me. It's the only platform that charges, and what's the main difference between it and the others? Cross-game chat and universal party system?

Playing your games online is the only thing that truly matters, and unfortunately Microsoft is using this to their advantage, forcing people to pay if they wanna use all the features of the $60 game they just bought (assuming said game has multiplayer). It's a pretty low down thing to do. Charging extra just to get access to all of your game on the 360.

jmare3719d ago

Let's be honest. Regardless of all the "features" that Live has or doesn't, there is one reason and one reason only people pay for Live: They want to play online.

That's it. That's the secret. People pay for Live because they want to play online; none of the other features matter more than that.

lowcarb3719d ago

If you don't want it or can't afford it then just don't buy it. I bet if Psn was nonexistent you would still see arguments about live's charge throughout the Sony community. What's confusing to me is why Sony fanboys worry so bad about what's going on with 360 and it's customers. You guy's should be asking why PSN doesn't offer the same thing live does and demand it all for free.

Tony P3719d ago

The sole feature that bothers me (and probably bothers most) about XBL is having to pay to play for online MP when all of their competitors can afford not to. Making NXE, chat, vision chat, Netflix, Twitter, Facebook, etc. premium perks would be enough, perhaps? But I think they'll always play it safe by charging for the MP.

At the same time it's weird to me that online play on consoles arguably became such a driving force with Xbox and not PS2 even though MS charged for it.

3719d ago
Greywulf3719d ago

just saying, thats why its...



PSN is great for:

1. Playing a game you purchased online for free.
2. Messaging friends, that also play the game.

XBL is a community. More like an online service like AOL rather than just a service provider like PSN is. But the day PSN adds Cross game invites/Chat, thats the only reason youre paying for XBL. Keep in mind pS3 has a browser, and you can simply netflix from your pc to your ps3, if thats a gigantic purchasing decision for your gaming console.

SnuggleBandit3719d ago

Watch it ATY i just said the same thing down further in the comments and got deleted...

HolyOrangeCows3719d ago

Their servers aren't any better than on other platforms.
I don't want to pay $50 a year for chat options and some non-gaming related stuff.

cmrbe3719d ago

I understand Konic. Having most of your friends on xbxolive is also a reason why its easier to deal with the fees i guess.

I still wonder though. Does MS really need to charge for live to keep live as is?. It would help their console much more if they were to make live free.

KionicWarlord2223719d ago

Yeah i suppose thats one of the reasons . But i guess what wwe all should be looking at is what we are paying for .

Personally i dont know the difference of psn vs xbl . But by seeing forums and wiki ...each service has something the other doesn't have .

ATY3719d ago

"Their servers aren't any better than on other platforms. "

The Xbox servers are worse than on other platforms:

Microsoft: P2P networking

PC gaming: Dedicated servers

Sony: Dedicated servers

P2P online tech that Microsoft relies on means that games are hosted off other players home network connections. That means that the number of players is severely limited. And it leads to terrible lag problems in games due to the tiny upstream bandwidth home network connections have and the person hosting the game could easily be downloading torrents or other stuff clogging up their connection.

Sony's, and PC gaming, online don't have that problem. They are hosted off machines that are doing nothing but serving games. That is why Sony is able to have gigantic online games with 40, 64, and even 256 player MAG with lagfree online play. And why Microsoft can't even get 10 player online games like Gears of War have horrible lag and connection problems.

thebudgetgamer3719d ago

who the hell am i to tell you how to spend your money. for me personaly i would rather buy games but to each their own i guess.


tehReaper3719d ago (Edited 3719d ago )

"Demon, dont you kinda own yourself when you say "While I agree games should be playable online out of the box for 60 bucks'"

Own myself? Dude, I'm not dumb. I know it's wrong that Microsoft makes you pay to play online. It's just not an issue for me, considering my job. For others it is, and not everyone is like me. I comprehend that.

I see more value in the PS3 slim now than the 360 as a hardware console, but at launch people paid 500-600 dollars for Blu-ray, Wifi, and the backing of the brand name of Sony. Those were "extra" features at the time but people still saw value(why wouldn't they?). That's not the case now, obviously because of the price drop, but you know what I'm getting at hopefully. Microsoft has charged a fee since the original Xbox. Why is that? Because they offer the best service. PSN wouldn't have as many features if LIVE didn't set the bar. Microsoft will just keep adding more features and more value to justify the price to keep their users.

Me? I want the best. I can't get the best with just one console. So I have both. If I want Blu-ray and Sony's sweet exclusives, I got them. If I want an amazing online service, XBLA, and MS' exclusives, I got them too.

Why do you think there are less active players on PSN than LIVE? There's only a 8 million gap. Surely the free service should be more active, am I right?

cmrbe3719d ago

Yes that is true but as long as xbox fans are willing to pay MS will most likely never make it free. Why should they make it free if xbox fans are ok with paying?. Truth is no one really wants to pay. If MS were to make xboxlive free today i doubt you will see any x360 fans complaining about it lol!.

@Konic. Live is a more unified service which makes it easier to use which is why alot of people prefer live. It combines social networking with online gaming seamlessly. PSN got the online gaming perfectly. Its just the social networking community/communication features that they have to integrate well that is left. I personally don't care networking/community features which is why i prefer PSN.

ChozenWoan3719d ago (Edited 3719d ago )

Thanks to the browser I can order a Papa John's Pizza right from my PS3. Now I don't even have to leave the house all weekend while binge gaming.

So can you do the same with the $50 a year ($250- $500 this console gen) service? At $50/year I could purchase 1 pizza/2 months (30-60 this console gen), ohh the sweet taste of the PSN.

The-Warranty3719d ago

lol I never tried that! ahh free web browsing, I love PSN

thebudgetgamer3719d ago (Edited 3719d ago )

the thing that bothers me is that it seems some people are fighting to pay for xbl. who doesnt want things to be cheaper?

EDIT: nevermind things should be MORE EXPENSIVE.

edit2: below do you actually send microsoft 8 dollars a month?

jav09183719d ago

Obviously its not overpriced and its worth the 8 bucks a month or 50 dollars a year which is nothing because millions of people play it. The only people complaining about live are the people who don't play online anyway or don't have an xbox 360 its like the first guy said its nothing. Just 8 bucks and you get a whole bunch of features. Its like paying for Qore on the ps3 you access to betas and stuff.

NoBias3719d ago (Edited 3719d ago )

Doesn't this garbage get old after a while? I'll keep purchasing live. I'll also keep playing on PSN. I'm sorry, LIVE is cheap and if you can't afford $3-$4 a month... Well.... That really sucks for you.

I make $147 a day with my job. Others could easily make that in 2 days. Either way, that's 3 years of LIVE. One or two days of work equals 1,095 days of LIVE. I'm sorry, I understand people are going through hard times (hell I am, still paying off college and bills and all that) but damn, LIVE is the cheapness and gamers that keep complaining about it are cheap as well.

Most who do complain don't even have 360's though and that's the part that just gets annoying after awhile. Either way all the dumb articles that continuously pop up here on this site month after month after month after month after MONTH are not going to make me say:

"You know what, yeah! I'm done paying for LIVE! Why didn't I think of doing this earlier?! I could have saved myself a whole $100!... even though it's been 2 years... and it's not hard AT ALL to save up $100 over the span of 730 days..."

For people who have PS3's and have built beastly PC's... You all are cheap...

TotalPS3Fanboy3719d ago

Xbox Live is still not worth it, even if I am a millionaire.

HolyOrangeCows3719d ago

It is NOT $8 a month, it's $50 for an unforeseen year of LIVE.

Remember when Xbox LIVE pretty much crashed in early 2008?

Snoogins3719d ago

The ONLY difference in features between PSN and XBL Gold (premium, not features included in free Silver):
Netflix Instant Queue
Party movie streaming
Universal Voice Chat
Universal Game Invites

PS3 gets Twitter, FaceBook, and plenty of the other fluff for free via the browser. So, when PSN gets Universal Chat/Invites and Home Media Streaming, will you, the consumer, still be able to justify the $50 fee of XBL? Do the current exclusive features warrant the $50?

Saaking3719d ago

XBL should be free. There is nothing MS giving you other than cross game chat. And even though you pay you STILL get ads. Wtf are you paying for? IMO XBL should def. be free.

darthv723719d ago

Why do the sony fans worry so much about what the other guy is paying for? THey dont have to pay so why not be rejoicing in that instead of getting hot and bothered about something THEY DONT DO THEMSELVES???

It is really weird. Maybe it is some form of envy or something. You dont have what the other guy has so you feel the need to downplay it every way possible. There are classes to help people with that sort of addiction.

It is also funny how those who pay for live generally dont complain that much about psn being free but those who are on psn sure as hell complain about others paying for live. WOW what a strange twist of events.

HolyOrangeCows3719d ago

It's cute how you assume it's Sony-only fans.
But the truth is, not everyone is content with throwing $50 away just because they can afford it.

Go play in the open zone with the others who can't stand others having varied opinions.

TotalPS3Fanboy3719d ago (Edited 3719d ago )

Because PS3 fans care when Microsoft screw over customers. Customers may not care, but PS3 fans care. It's like the girl getting abuse by her boyfriend in a relationship. She may not care. But other peole cares. Seriously, they just want to help.

cmrbe3719d ago (Edited 3719d ago )

It is possible that to some PS fans paying for xboxlive is a turn off.

It is possible that PS fans want x360 fans to not pay for xboxlive like they are not doing for PSN.

It is possible that xboxlive subscription model is a threat to free PSN model as Sony might follow MS.

It is possible that PS fans don't see any reason why people should be paying for xboxlive and are just stating their opinion like i am on this article about xbolive and cost.

NegativeCreepWA3719d ago

Blah, blah, blah, that's all I'm hearing.

When Sony starts handling the match making servers for every game on PSN I will think Live is over priced. Right now they only take care of their own games, while third party devs fend for themselves.

coolirisGB3719d ago

As expected all PS3 fans in here.

aueslander3719d ago

....seeing as you gotta pay what, like $15 or so a month? Still, most PS3 fanboys back before the price drop would laugh and thumb their noses at those who didnt want to pay $399+ for a game console saying you were either too cheap or poor to buy one yet they then b!tch about that it costs 13.69 cents per day.

Also, if you only have a ps3 and have no plans on getting a 360, then why should you care? It's not affecting you at all since you said you wont buy a 360 NOR would you pay for online.

I mean really, shouldnt you sony fanboys be playing one of your super duper AAA exclusives that you always thump your chest about instead of coming here? KZ2 is supposed to be teh bestaz shooterz on any platform yet you are on here instead of using your FREE ONLINE TO PLAY THE DAMN GAME. Then again, seeing that only what, 9% +/- a few % of PS3 owners bought the damn game, it's no wonder ya'll are here. You hype up games to no end then don't buy them.

Sorry, was a bit off topic but yea, LIVE has been the same price since 2002 when it launched and most 360 fans dont have a prob paying $50 a year. Also, a ton of games have a good single player campaign so, if you are like me and care about campaign first, multi second, then YOU DONT HAVE TO BUY GOLD!!!!

And all this crap about saying the $50 is a loan for 360 owners to buy the 360, that is a crock of crap since, um, well, in case you are retarded I will try to say this simply, YOU DON'T HAVE TO HAVE ONLINE TO PLAY THE SYSTEM.

God, this is another reason why this gen sucks ass, first you got fanboys on both sides that take things way too far (probably due to being kids like I was back during the SNES vs Genesis days when I admitedly was a fanboy but there was no wide spread internet) and now this gen's fans seem to only care about multi player as opposed to single which is where games should matter most. Care more about single player and be thankful for a second player.

Thing is, for you PS3 fans who ONLY do multi (and I know quite a few who only play the online portions and never touch the single player) shouldn't you be getting pissed that you are paying $60 for what to you is essentially an online only game ESPECIALLY if you never touch the single player?

Syronicus3719d ago

No, it's not that simple. That is simply YOUR opinion. All I require of an online service is to do just that, play games online. I can do that for free on the PSN and PC. All the extra features of Live are nice but they are not what I need to enjoy playing games online.

-chaz-3719d ago

Anyone who says that "PSN uses dedicated servers" is a moron. There are maybe 4 or 5 games that use dedicated servers on the PSN, the rest is P2P.

Poopface the 2nd3718d ago

The only people who care about the price of LIVE are people who dont use it or dont have a 360.

I would like online gaming to be free on xbox, but now that microsoft is adding value so I might still buy it anyways. I just got netflix and I really like streaming movies to it. For people who played on live back in halo 2 days, they see live as constantly adding more value.

i THINK MICROSOFT NEEDS TO KEEP ADDING GOLD ONLY FEATURES AND EVENTUALLY MAKE ONLINE GAMING FREE. That way alot of people would continue to pay(maybe a reduced fee) for the other features it offers. Also the people who dont have Gold now would be more likely to buy online games/DLC if they could play online for free.

Even though I think it is a good idea to make online gaming free, I have no problem paying for it when I feel like playing my 360 online. It really isnt that expensive when you consider the prices of everyday stuff. The price of live has nothing to do with PSN, and only has to do with the value that LIVE offerers to its customers.

If you dont think its worth it shut up and dont pay. I think most people complaining are the ones who dont have an xbox.

I also have PSN and my favorite online game is CS source. I dont need to pay for LIVE but I dont mind paying the 4-5$ a month when I feel its worth it.

Alot of you need to stop trying to get people to see the PSN as the better value because its the only choice you have. If it is a big issue to them then they have already made their decision when choosing a ps3 or 360. For people like me who play one more than one platform, its our choice that matters to us, not what some whinny troll uses because they dont have a choice. If we listened to fanboys in the comment section we would be like alot of you and miss out on alot of games and features because you think the choice is mutually exclusive.

+ Show (38) more repliesLast reply 3718d ago
D4RkNIKON3719d ago

I am sorry but it just is... I would buy a 360 if I didn't have to pay a subscription fee. People say $50 a year is like nothing, but it adds up. 3 years is $150, that is a lot of content on PSN or AAA game titles.

tatotiburon3719d ago

and in 60 years is us$3000 and i can buy a bike...but maybe i'll be dead...

lazy argument

SnuggleBandit3719d ago

for me its that and the R R O D

PimpDaddy3719d ago

it's not like either one of you own a 360. So why bother. Go salute Sony somewhere else. I own both consoles. Who wouldnt want XBL Gold for free? But neither this Gabe troll or D4RkNIKON should be taken seriously. Its obvious they are both here to spread thier pro-PS3 agenda.

Its my opinion, but I dont mind paying a little bit over $4.00 USD a month to play online on a unified gaming service. Though PSN is a good service to me, being able to do cross gaming chats and in-game invites pushes XBL over the top for me.

I used to help moderate a gaming website and we would organize weekend games on both consoles. It was so much easier to get into a game of Halo or Gears vs Warhawk or RFOM.

DelbertGrady3719d ago

I would buy a PS3 if there wasn't so much problems with the firmware updates.

peeps3719d ago

"I would buy a PS3 if there wasn't so much problems with the firmware updates. "

really? what problems are these then. i know that a few ppl have had problems with 3.0, i personally haven't but oh look, for those that did 3.01 just launched

mfwahwah3718d ago


We SONY fanboys don't bash the quality of live. We bash the quality of the value.

I mean I CAN afford $50 a year for Live. Easily. But you know what else I could afford? I could afford to buy gas at $10 a gallon. I could afford to buy $200 pants and $75 shirts. I could easily purchase a phone for hundreds.

I don't because I like a value. I enjoy saving my money every way I possibly can. Paying $4 a month when I can play for free on PSN or my PC (Which has just about all of those 360 "exclusives") seems stupid as Hell to me. And most of my friends own a PS3. They used to own 360s but I didn't buy one to join them. I convinced them to join me and I swear to you, they have not missed their 360. Every one of the 6 is happier with their PS3.

+ Show (4) more repliesLast reply 3718d ago
PandemicPrawn03719d ago

I didn't think live was a subscription based service, isn't it more like a prepay service? you buy a three or twelve month top-up as you need it?

I'm not on live myself, but isn't the silver service still available for downloading content and games without gold membership?

KionicWarlord2223719d ago


You dont need a gold account to download dlc .

kapedkrusader3719d ago

...but you do to game online. Which is half or all of the fun of playing games like Call of Duty.

tehReaper3719d ago

You can either go the pre-pay route or the monthly subscription fee.

Faztkiller3719d ago

yeah u can still download stuff but somtimes the gold get stuff weeks before silver

peeps3719d ago

yeh 1 thing that really annoys me about not being on Gold is not being able to get demo's when they release. it's a demo ffs, the point of it is to try and sell me a game and yet it's saying i have to wait a few weeks for a privalage to do so

+ Show (2) more repliesLast reply 3719d ago
Obama3719d ago

Uncharted 2 - 21/20

Jump out~

shutupandplay3719d ago

Oh, some PS3 site gave Uncharted 2 21/20. Just a bunch of immature, and insecure ps3 fans running a ps3 site.

KionicWarlord2223719d ago

Uncharted got a 11/10 ?!?!?


Obama3719d ago

The same mag also gave Infamous 7/10, so before you call it bias do some research.

KionicWarlord2223719d ago

no no..

I wasn't going to call it bias .

Obama3719d ago

I was talking to shutupandplay. He was suggesting that the mag is bias.

ShadowCK3719d ago

It's not overpriced at all. 50 dollars per year?

Christ, Get a job you cheapskate.

cyborg69713719d ago (Edited 3719d ago )

Getting a job isn't the point the question is is it overpriced. And it is, wow wii like avatars here's 50 bucks whatever. After the nxe it got worse the navigation was cumbersome and the look was [email protected] I will always say if online gaming was at the silver level no one would have gold.

Saaking3719d ago

Indeed xbl is a ripoff. But bots love getting screwed by MS.

11 360s and counting3719d ago

Its not about being a cheapskate. Its about justifying what you are paying for. Bottom line, there is no justification. People are foolish and either accept or just don't see how m$ nickels and dimes EVERYTHING! Wake up!!!!!!!!!!!!!!!!!

PS3PCFTW3719d ago

heres the facts no spin:

ms patented the ingame music
cross gamechat bullshit.
so they can charge for it

the xmb can handle that. but had ms not patented would have offered it for free on the xmb. meaning,IT WOULD HAVE BEEN MORE APPARENT that xblive is worthless from the start.

i told you [email protected], U are getting raped.

+ Show (8) more repliesLast reply 3719d ago