If people didn't stop buying X360's after the RRoD fiasco or buying Nintendo consoles after the GC fiasco or PS3's after the hacking epidemic. Surely they still stop buying X720's because of $50/y for Live. Makes sense...

Well then again I see MMOs as worse.

60 per year to play everything > 20 per month to play one game.

Xbox live has certainly lost its edge over the course of this generation. Xbox live was once a dominant online system that one could reasonably justify its cost. However, as more competitors adopt free online and similar features to live, it has lost that edge.

Now, microsoft doesnt neccessarily have to start giving stuff away for free like everybody else. They can still withold multiplayer if they want to incentivise the service, but it needs more value. If they combined xbox live with a playstation plus type service, that could work. Microsoft seems to already be working on media channels, and that might work too if it is compelling.

I agree with MS folks on this. Live is immensely profitable for them and people who are paying for it defend the service all the time. I think free market should decide whether or not this service is viable or not. For those like me who didn't like the idea of paying for online chose another console.

In fact at the start of next gen they'll have the option of raising the price and offering more services. If the market can sustain that than they should go for it. Principles don't really matter in big business. Re-branded products such as cars etc are sold under premium brands for severe mark up. Should be no different here. There is more choices for games today with competing platforms, free to play games and portable games. So no point complaining.

Huh? Not a single person has addressed it. You've mentioned the service itself, but not the idea of locking out multiplayer content that is on disc.

That's what I want you to address, not the entirety of XBL(G). This is why I keep saying it isn't the price that is the issue. 

As people become more informed and as next-gen starts a clean slate, more people will choose PS4 over XBox 720 in the early years. Not saying free PSN will be the only reason, there will be other factors. 
Gamertags and Achievements aren't as important to the majority. Only a select few super hardcore gamers care about that stuff.

Would it be better if online was free and they offered other premium services for the subscription? Yes! But the fact of the matter is that most people make a conscious decision of buying XBOX 360 console and they know or should know what they are getting into. Would sales be higher for the console as other interested parties might pick 360 as 2nd console? Most likely. I am sure they've done calculation on how much extra income the prospective sales might bring compared to making the service free. Charging for live and online play makes more sense to them and they are sticking with it. I hope that helps. 

For more detailed answer you'll have to write to xbox marketing/finance devision.

Service includes Online.  It is a good online infrastructure.  Better than competeing services and yes I own all including

XBLG
PSN
Steam
Origin
Usoft

Am I missing any?

XBLG offers a quick, easy to access online using servers that they provide. Everything from the dashboard, messaging, to XBL Party chat is quick and easy. You are not forced to use ping where multiplayer becomes based off how good your ping is like Origin, Usoft, and Steam games.  PSN has been confusing, slow, and too many steps to even invite friends.  I remember playing Killzone 2 and it was a pain just inviting friends to the room.  Should we make threads about all of these things? Do you think MSFT is holding a gun to your head telling you have to buy XBLG? No, you have the choice but because you and other people choose differently that gives you the right to complain about it and say a successful service is bad?

And anybody who has listened to me say anything on these forums knows I love steam but I still like XBL for the things it does in multiplayer regardless of how much I like steam.

And if we are going to start playing a what if game, what if Sony starts charging for online next generation?  Then what happens?  Maybe I should just go make a thread about that?  It would be more original than this thread that has been alone created about 20 times in the last 2 months.

As long as it makes money for MS, it should not go away. It is quite simple.

Isn't it about time threads like this start getting locked, I've not seen one point mentioned in either the article or peoples posts that hasn't been discussed in countless threads here. If you don't want to pay the don't buy the console, its not rocket science.