Live on the first Xbox was $50 and the service was the best available on consoles. I don't game on a PC. Didn't have an origianl Xbox.
When I got a 360, Live was $50. I thought it was an awesome service. It cost $50. I thought it was worth it. PS3's online is good and just as functional but I got my PS3 in 2008, it was nowhere near XBL's level. Sony offered it for free as a selling point, I assume. PSN's quality has increased by leaps and bounds over the past few years. It's still not as good as Live but it's pretty good.
PSN can't increase in cost because it would cause backlash amongst users. I think it's worth about $40 a year, personally. It's not that Xbox Live should be free- I think it's worth every penny. It's that Sony has never tried to make money on the PSN (aside from the PSN+ program). Sony's giving away a source of revenue for free like idiots. Microsoft is running a business and making money off of it.
Live is worth it because people will pay for it. Just like how a diamond is worth nothing more than what people are willing to pay for it. If you were starving and you had a diamond, that diamond would be worth the price of a ham sandwich. I think Live is worth $60 a year so I pay for it. If I didn't, I wouldn't. I can't explain to you why you should think something is worth what I think. If the free option is better for you, go for it. I tried the free option and I went back to the paid option.
