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1. You're wrong. For example one of the first games given out on live is Halo 3 right? YOU NEED XBL GOLD TO PLAY THAT GAME. So even if you could continue playing single-player, why would you? Multiplayer is what keeps people playing and it would be useless without it.

How exactly do YOU NEED XBL GOLD TO PLAY THAT GAME?

How is it useless?