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Forums - Microsoft Discussion - The reason why you pay for Xbox Live - An attempted Explanation

KylieDog said:
No, I'm saying if its done for that price of a game on PS3 and remains free to play online, the same can be done for the 360, since it is priced identical.

 

Or you could be saying you really should be mad at the developers that price their 360 at $60 and not MS since they're doing something that should decrease the price of games (on the 360 at least).



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prlatino86 said:
Heres my take on Xbox Live over PSN.

I personally prefer it, because while I have no problem playing online games over Live, i cant get through a damn single match in any multiplayer games on PSN without losing connection to host. It gets so frustrating i stopped even trying to play over PSN and had to rebuy some games for Xbox live to play multi there.

To me, the 50 bucks is worth it.

 

Well I don't think the PSN servers are any better or worse than LIVE, but I will say that I'd pay for LIVE any day of the week.  It's definitely the superior online service.. well worth the 50 bucks a year to say the least.

I simply think that the interaction and "feel" of the 360 is much more user friendly and easier to use.

Of course, the PSN has it's perks too (like free), but that's about it.  Mostly it gets very annoying, which stinks for me, because I'm a big PS3 fan (well, I'm a big 360 fan too, but that's beside the point I suppose).



MarioKart:

Wii Code:

2278-0348-4368

1697-4391-7093-9431

XBOX LIVE: Comrade Tovya 2
PSN ID:

Comrade_Tovya

twesterm said:
KylieDog said:
No, I'm saying if its done for that price of a game on PS3 and remains free to play online, the same can be done for the 360, since it is priced identical.

 

Or you could be saying you really should be mad at the developers that price their 360 at $60 and not MS since they're doing something that should decrease the price of games (on the 360 at least).

 

Exactly!  Blame the developers for charging us the same even though they incur less charges due to us footing the server bill... or we could blame ourselves.  It's a free market created situation really.  They charge $60 for a game they have less self-incurred cost on, and we still pay for it.  Why should they charge any less if we are willing to pay more?

Either way, even at $60.00, video games are well worth the price.  Two Blu-rays or four standard DVDs cost the same, and you only get 4-8 hours of pleasure out of them.  Each video game, on the other hand, generally get played for literally hundreds of hours (or in my case thousands).  I'd imagine a game like COD4 for me has probablly only cost me about 2 or 3 cents an hour to play for me because I have racked up so many hours on it (both console versions actually).

Long story short, video games and online services (free or not) are actually very cheap when compared to other forms of entertainment.



MarioKart:

Wii Code:

2278-0348-4368

1697-4391-7093-9431

XBOX LIVE: Comrade Tovya 2
PSN ID:

Comrade_Tovya

This subject is just silly. I'm with the crowd that can't believe people are still talking about this. If PSN is just attempting to "rip off" of everything that Xbox Live does, then Xbox live is just attempting to "rip off" whatever steam's been doing, because that's the chain of superiority right? Then what gives.

Paying $50 a year to "occasionally" play a game online is a total rip off ;/ If your more of a "hardcore" online player, then sure, you don't mind spending the cost of a game, (or many arcade/psn games), on the sole purpose of playing online. It may seem like "Only $50 a year!!! HAHAHAHA", then you play online for.... 4.... 5 years >_>;;; well guess what... that was a Wii, that was your PC upgrade, hell, that was a friggin 450$ MINIMUM xbox arcade unit.

Anyone saying it sucks for the company is probably right in that regard, but c'mon, they've been running servers for pc games for decades now :/ it's not like this is new. If a company goes under because it couldn't project the cost of maintaining a server, well I think they were screwed from the get go :\

Then there's the nonsense of some PSN games having higher player counts for it's online play. Man that blows, so less lag, higher player counts... and free? MS seriously needs to stop dicking around with it's pay to play nonsense and join the rest of the world :P Because as mentioned above, every other aspect of live is free with the silver version, only the pay to play costs.



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tuoyo said:

You do realise there is another console manufacturer other than Microsoft and Sony?  Their console is the cheapest to make and it comes with built in wireless and comes with free online.  And they are far ahead of either Mircosoft or Sony and will probably outsell them combined before the end of the first half of next year.

What is wrong with Microsofts approach is I want to be able to play multiple player games online without having to pay £50 a year for that.  By not offering a free service it means while I can enjoy games like Brawl and Mario Kart online for free I will probably never play any 360 games online because I don't see why I should pay Microsoft that amount for something I am receiving free elsewhere. 

 

 

You can't compare the wii to the 360/PS3 market. Even Nintendo, is trying to build an online initiative.

With Microsoft, nothing comes for free. Anyhow, this business model is the most successful so far, so what do you want to do about it ?

The same principle applies to the rest of the electronic industries : Hardware has poor margin while services brings cash.

It is a question of maintaining a successful long-term business (Nintendo is an exection cause the Wii is cheap and the sales are enormous).



 

Evan Wells (Uncharted 2): I think the differences that you see between any two games has much more to do with the developer than whether it’s on the Xbox or PS3.

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Dodece said:
Providing a online service does actually involve a cost. Cable companies do not just hand out bandwidth freely. Servers do not grow on trees. Administrators do not pass through membranes from other universes. You cannot pray and receive registrations from god. Landlords totally let you stay without paying rent.

Other manufacturers provide free online play services, but that does not mean they are free to run. The manufacturer is loss leading. They are losing money, because they are actually covering the cost at the cash register. This is part of why you pay more for a PS3 or a Wii. You are being charged up front for the service whether you use it or not.

Profit making yes, but money grabbing no. Yes it probably does cost around three dollars a month for Microsoft to administrate its online service. The rest is probably profit, but a company does deserve to make a profit for its wares. That is why they make things to begin with. Investors do expect dividends this is after all not charity.

For those that asked you can find a thirteen month card for fifty dollars which is basically less then four dollars a month. Which is actually pretty thrifty compared to other online services, and is actually more reliable then developer provided support. Which is often discontinued in under a year.

 

I'm sorry but manufacturers have no right milking people for profit. Sony makes a loss on their consoles and on their online to provide us with the best value and quality. The xbox and wii essentially charging us more than the costs to manufacture etc for the sake of profits shouldn't be tolerated. Why pay more for something than it actually costs?? Sony is the only honest VG company in this regard.



Blizzard did it for the longest time, and had the most heavily played games on the planet. I guess some companies just don't learn.



The fact is, I'd rather pay for quality and everything that comes with it. $8/monthly is nothing for a superior service.



Proud Owner of: 

250gig FFXIII SE Xbox 360, 250gig Xbox 360 S, black Wii, 120gig PS3 Slim, soon to be 3DS *___*


Sardauk said:

 

You can't compare the wii to the 360/PS3 market. Even Nintendo, is trying to build an online initiative.

With Microsoft, nothing comes for free. Anyhow, this business model is the most successful so far, so what do you want to do about it ?

The same principle applies to the rest of the electronic industries : Hardware has poor margin while services brings cash.

It is a question of maintaining a successful long-term business (Nintendo is an exection cause the Wii is cheap and the sales are enormous).

The alternative answer is to find some way to bring income and not force it upon your fan base. What sony's doing with Home is not only brilliant in the fact that it gives it's gamers interactive pre-game areas where you can digitally meet people face to face before playing with or against them/ organize pretty much anything you damn well please :P, but also in the fact that in they're efforts to make the world feel more realistic and tangible, they're incorporating wall space advertisements (not pop ups >_> ), and branded clothing for your custom character (should you feel your new home....ie... need's the newest kicks from Nike and they're worth paying for, that is if they're not already free and an attempt to advertise). It brings in plenty of money for the company, provides a great environment for advertisement exposure, and sadly, brings some realism to your virtual world :P

How do you kill 80 birds with one stone? Do something awesome >_>; Like that.

Sorry for the horrid word block :D I have to keep tabbing out so my use of time is limited ;/



From 0 to KICKASS in .stupid seconds.

DTG said:
Dodece said:
Providing a online service does actually involve a cost. Cable companies do not just hand out bandwidth freely. Servers do not grow on trees. Administrators do not pass through membranes from other universes. You cannot pray and receive registrations from god. Landlords totally let you stay without paying rent.

Other manufacturers provide free online play services, but that does not mean they are free to run. The manufacturer is loss leading. They are losing money, because they are actually covering the cost at the cash register. This is part of why you pay more for a PS3 or a Wii. You are being charged up front for the service whether you use it or not.

Profit making yes, but money grabbing no. Yes it probably does cost around three dollars a month for Microsoft to administrate its online service. The rest is probably profit, but a company does deserve to make a profit for its wares. That is why they make things to begin with. Investors do expect dividends this is after all not charity.

For those that asked you can find a thirteen month card for fifty dollars which is basically less then four dollars a month. Which is actually pretty thrifty compared to other online services, and is actually more reliable then developer provided support. Which is often discontinued in under a year.

 

I'm sorry but manufacturers have no right milking people for profit. Sony makes a loss on their consoles and on their online to provide us with the best value and quality. The xbox and wii essentially charging us more than the costs to manufacture etc for the sake of profits shouldn't be tolerated. Why pay more for something than it actually costs?? Sony is the only honest VG company in this regard.

 

This isn't a morality issue.  If you don't want to pay the fee for something that the majority of gaming world regards as a premium service, then don't.  Nobody is forcing you to.

 

XBLhas a different strategy than it's competitors.  It's that's simple.