Anyone trying to use XBOX live recently has probably had to deal with this. Good news is there are tons of new users, the bad news is the system wasn't set up to handle all of the new users.
As a side note, MS recieves a lot of money for XBOX Live memberships, and therefore has put a lot of money into building a large infrastructure to play online. If with all this infrastructure funding MS can't keep up with the demand of 10-12 mil users, how would Nin of Sony handle a continuous server for all of their games? How will they finance the infrastructure? Just curious to know if they have a better long term strategy.