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I think it would increase sales slightly, but not enough to be a major impact unless it came with a price cut. Live should have been free in the first place. It isn't worth the money in my eyes. It is a stellar service overall, but still not worth it.

It makes too much money for Microsoft to just get up and say, goodbye! Live makes the game division millions, and that helps with losses, and exclusivity deals. It would be one of the dumbest business moves I have ever seen if they did it though.

If Live became free, I would only use it to maybe play exclusive 360 demos, or if a JRPG has online.