I'm sorry to butt in your conversation but this site relies mostly on educated guesses. Just because someone doesn't take the time to explain exactly how things work doesn't mean they have no clues how said thing work. Some people like myself have jobs that are related to advertizing (maybe not the same as those found on the Xbox dashboard but still) and taking the time to explain how it works to someone that doesn't work may take too much time.

You keep saying people make false claims with no evidence but should I remind you that a lot of people like you immediately jump on the idea that since there are ads on the dashboard then they should get enough money to run the service. This way of thinking makes others cringe since when you look at the ads you quickly realise that it's impossible. Ads on tv generate way more revenue than other ads and they pay way more than the others. But just because I will not give you a link with numbers you'll still keep saying it should be enough, this is an uneducated guess but you seem to like this idea better.

Show me where I said the ads could cover it or even anything about it.  I saw someone post that something empatically - as in factually in context - and asked for what was behind their claim.  Turned out to be guesses.  Also, the site functions on extrapolation from real numbers polled from retailers so far as I know, not pure estimates based on guesswork.

Your post is simply the kind of thing I was looking for - either example data to support the estimate or some idea why you would think so.  Check the post trail again.  The people I queried simply said "it's this" and then had no real reason to have said so nor any kind of annecdotal evidence or experience.

To make any kind of informed guess here - which is what you're talking about - you would need two pieces of information.  An estimate of Live costs - doesn't have to be the real figures but just something sensible based on some extrapolation of the service infrastructure.  Second, an estimate, based on the kind of knowlege you mention, of probable income of advertising on Live.

I've seen no-one - until you at least mentioned advertising - come up with anything satisfcatory here.

finally, the burden of proof in this site is on the person making the claim.  If you post here claiming X then you better be ready with something behind the claim.  Doesn't have to be facts, but it does at least have to be "I believe based on X that Live probable costs Y and that advertising is probably only W based on Z".  Anything else is simply an internet fact - i.e. a guess.

When I make claims, which I sometimes do, I'm always prepared to back them up with some knowledge if its an informed guess or links if I think it's more than an informed guess.

There is only one AD on the dashboard. One ad cannot support an entire service such as live. You people are pathetic to make such a claim. And for those who have never used live and are on this thread. There are no pop ups, or in game ads, there is only on tiny ad in the bottom right of your dashboard.

True that...

http://www.youtube.com/watch?v=Ob3xTBsT09w

are you sure? this video shows the new interface for the 360 ( released a short while ago ) and i can count this person showing at least 4 different ads ( most likely at different times )

all i'm saying is that its not completely unfeasable to think that the revenue brough in from these may be able to cover the cost of the service... well if you aren't convinced that it takes a fortune to support i guess

if commentators on youtube can bring in so much money from advertising on their videos that they begin to consider it as a job i have to consider the possibility that the ads on xbl can be just as lucrative... then multiply that by millions of users

Its still just one ad and at different times. If you owned a 360 you would know, but you dont. So i don't even know why you would even be posting here.

I fail to see how anyone can think Live can be supported by one ad? How much money do you think MS honestly makes from from one advertisment? Do you understand how a business works? How much it costs to run  and operate? There service it self may not cost a fortune to run but paying the people behind it and all the overhead expenese do. There are many expense's that a company like MS would have, and to honestly think that ONE and i repeat ONE advertisment can cover it all is just plain stupid. 

" I fail to see how anyone can think Live can be supported by one ad? How much money do you think MS honestly makes from from one advertisment? Do you understand how a business works? How much it costs to run  and operate? There service it self may not cost a fortune to run but paying the people behind it and all the overhead expenese do. There are many expense's that a company like MS would have'

ok i'm willing to accept that you understand microsoft's business model better than me so what estimate would you give for the costs of the service?

and what estimate would you give for the ads displayed across the millions of 360s connected to xbl?

I have know idea how much it costs MS to run live but its more money than a single advertisment can bring in. 

As for the estimate no more infact probably less than it costs to run a ad during a big sporting event like the super bowl or the olympics. A 30 sec Superbowl ad cost around 3 million bucks and there are way more people watching the superbowl than there are Xbox live subscribers.

If you can honestly  tell me that an Ad on Xbox live that you need to click on to veiw properly cost more than superbowl Ad, than this is over and i have just wasted my time. 

Here's a link to the top ten youtube partners. Just for reference. http://socialtimes.com/money-youtube-partners_b21335

so... i guess from your reply, you don't really have an idea on how the ad revenue compares to the cost to run the service?

btw what aspects of the service do you think drive the cost up so high?

edit : another user attributed the exorbitant costs of xbl to exclusive content, bandwith costs and running servers among other things... what about you?