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the reason why MS is a pay service is because MS provides the infrastructure. Sony and Nintendo, on the other hand, provide nothing. That means the game company that makes the game has to provide the servers, etc, and multiplayer becomes much more expensive for the company.

If Xbox Live Gold was to be fre, then MS would have to give up their servers and put the burden on the game developers. It would mean less online titles and less integration between services. 

You pay the extra money for the focus on online. 



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