Why is Microsoft not giving Xbox Live free?

[IamSofaKingRaw]

I own a Xbox 360 and repeatedly having to pay for a Xbox Live Gold Membership is quite annoying. After a while i started thinking about why Microsoft isn't giving Xbox Live free. Surely its to make more money and the Xbox Live service and benefits is quite worth it but surely they must realize that they lost many costumers to Sony's PS3 due to this and that this is always a major disadvantageous point when used in console wars. I am open to all views and opinions.

If you want to compare Sony and Microsoft's online offerings it's no contest. As an example, nothing on the playstation store has a demo, everything on the LIVE store does. That's because demos would cost the companies selling their games online money to host, microsoft handles those fees, thanks to you on live. More over you have incidents like in Super Street Fighter IV where capcom just couldn't afford to distribute costume data to all customers on Playstation network but could on live. Your money has a real, palpable outlet on live. This isn't to say there's no value in playstation plus either though, the "Free" games they have available make it pretty tempting. Ultimately, whether you're willing to pay for a service or not is related to how much value you derive from it.

Bolded part is wrong. Some(but very few) PSN games have demos. Your other point is not really of much value. You mention that but didn't the Mortal Kombat demo come first to PSN? Didn't Batman Arkham Asylum get free content only on the PS3. Getting demos for $3 games isn't much of an incentive to get $60 XBL.

Because server upkeep costs money, and more money means better upkeep. We pay so there is more money, therefore better servers.

There aren't any servers for XBL. Halo uses P2P. I think Gears 3 is going to be the first exclusive from MS to use servers. Sony's AAA games all use servers. KZ2 has server lists (KZ3 doesn't but they still use servers), Metal Gear Online has server lists, Resistance 2 has servers list, SOCOM uses servers. The difference is that we pay nothing for it.

 

[Coldster]

You realize that silver membership is free right? You can interact with your friends and you can play most of the online games except Halo and Quantum of Solace and a few others. I only pay gold because I want to be able to use the party feature, to play all the online games, and cause you get a bunch of extras. It's only $60 a year and that's really not that much compared to WoW or other things like internet service and cable. Plus Microsoft knows they can make some money with this idea...as long as Xbox LIVE remains better then PSN (I've played the PS3 online and as my subjective opinion, I do believe it is slightly worse overall).

Also, do people really buy a PS3 rather than an Xbox 360 just because of the free online? That sounds contridictory to me because I'm pretty sure the PS3 is $100 more expensive to buy.
Correct me if necessary.

 

[HerbertTheHamster]

Because money, derp.

 

[kyoodle]

Aside from the cost I've never noticed a difference between the two services, they both work fine.

The reason why Xbox Live arguably a better online service than PSN is because we pay for it. Our money lets Microsoft make improvements to XBL.

That's why even though it costs money, more people are on XBL than PSN. It's an all round better service.

There are twice as many people on PSN, although that does include people with PSP's.
http://www.computerandvideogames.com/282338/news/xbl-hits-30-million-accounts-psn-60-million/

 

[lacktheknack]

http://www.scientificamerican.com/media/inline/profit-from-climate-change_1.jpg

They're relying on their customers being short-sighted and only accounting for the cheaper price of the console. It's a good strategy, actually.

 

[SimpleJack]

No matter what happens, there will always be at least one greedy son of a ***** in the world.
Some of them are microsoft employees I guess.

 

[thenumberthirteen]

News Just In: Company charging money for goods and services!

Basically they feel they can make more money and provide a better service by charging customers to use XBL. It's the reason WoW isn't free to play. Because they're doing perfectly fine as they are, and there are plenty of people willing to pay a small fee for the extra content.

 

[Jamous]

Is it really worth the money? I never really realised PSN was all that bad. :/

 

[Twilight_guy]

So? There making more money on the subscription fee then what they'd make from having a few people switch from PS3 to X-box due to the lack of membership fees. Its more molla to do it this way.

 

[JochemDude]

'Cause they can.

 

[Zaik]

Because people will pay for it.

You can harp on the PSN all you like, but Steam does everything Xbox live does and costs $0/ever.

You can claim PC is the best which it probably is if done right, but I prefer my 200 dollar game system that is designed for gaming than my 500 dollar PC that if I play too many games on, I need to invest almost another 250+ into.

lol? Take your fanboy trolling elsewhere. The op asked why people pay for a service that is offered free other places, and I answered.

I just threw in Steam because it does everything live does for free to brush aside the usual Live > PSN argument.

 

[GotMalkAvian]

The simplest answer is that we continue to pay for it. If you'll notice, Microsoft has slowly been chipping away at the features for free (remember when it was still silver?) subscriptions. Obviously, this method is working and more and more people are ponying up for gold.

 

[PettingZOOPONY]

Because server upkeep costs money, and more money means better upkeep. We pay so there is more money, therefore better servers.

That used to be covered when you purchased a mp game, companies were expected to keep official MP server s up for the lifespan of the game.

 

[Sarge034]

Live has better service then the PSN. It is also more user friendly. I own, and play, on both.

ALSO, you think $60 a year is bad? Why do people pay $15 a month for WoW?

 

[mb16]

For all you boasting about the PC, yes steam may do what XBL does for free, but playing on my xbox i dont have to upgrade my software every few years to play the new games at a good level
lets go for the last 6 years from when the xbox came out
Xbox 360- £2040
Console: £200, live for 6years: £240, 40 new* games: £1600
PC (steam)-£1900
Gaming PC: £600, hardware/software updates: £100**, 40 new*** games : £1200

So really there isnt much difference in it, only £140

*new=£40 per game
**just a guess
***new=£30 per game

 

[Sven_Untgaarde]

I think there is something they should've spent their money on instead of good online support.

i don't think I'd need to 'cough cough hardware problems cough cough' tell you what that problem is.

 

[jakefongloo]

Because servers cost money to run.
It's either charge you, or do what Sony does, and charge developers who will then be less likely to support you.

Not all games run on servers (Call of Duty 2, Gears of War 2).


They charge because they can, and people are willing to pay for what should be free. It's the same logic behind Avatar crap; make a paper doll, then create a market for dressing up paper doll with 1-5 dollar accessories and watch the suckers spend cash on something that does nothing.

The big mac comparison is lame (and overused). Apples and oranges. It's more like buying a nice looking suit you can wear around the house, but you have to pay a fee to wear it outside with others. Too many apologists will make excuses for the practice, but ultimately it boils down to the difference between having more sense than money or having more money than sense.

Thank god your here to tell us all how microsoft runs. Whew, now i won't need to actually know the real answer and I can just parrot little "factiods" that so many other people who have no idea what they're talking about say.

This goes for anyone who is 100% agreement with the policy as well. Unless you have the top executive in finance of this company sit down and tell me if this is necessary or not, you cannot possibly be as sure as you sound right now. If you are then you are identifiably sheep. You heard something you like and now you think you're and expert in it.

I have absolutly no idea why that pissed me off so much. I must have read something like this 3 times before your post. I apologise that it was you i quoted but i stand by what i said... err, typed.

 

[hooglese]

I dont know the offical "reason" but it makes them money... duh

 

[Ziadaine_v1legacy]

Microsoft and free will never happen, They're like two opposing forces.