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dsgrue3 said:

My argument is why isn't this *service* separate from the multiplayer bare bones P2P/Dedicated type match-making? This is what I disagree with, not the features of the service itself. (So many people are confused by this, maybe I have been poor at explaining what I'm asking?)

I see what you are asking now.

I would simply say the reason it can't be separated is because Microsoft chose to include these services with every Xbox Live enabled game. They made the decision to better their service overall and as a result, it requires more expense. In order to separate it out, they'd have to drastically change their system to support 2 different playing methods and then each developer would also have to provide for 2 different systems. It would be a mess.

Sony chose not to include some of these things to keep the cost down to end users, but it raises costs for developers and can lead to a sometimes less fluent experience in online gaming.

If all you really want is a bare bones P2P/Dedicated multiplayer game with none of the other features and services, you can use things out there such as Xbox Connect which basically turns LAN functionality into an online P2P/Dedicated functionality.

http://www.xbconnect.com/