Why Xbox Live Can’t Be Free… Yet >> The Far Side of Tech

In a recent post over at CNet Digital Home, Don Reisinger argues that Microsoft should make Xbox Live free. To an extent, I actually agree with him. Of course, I don’t think the situation is as clear-cut as Reisinger believes. Yes, Xbox Live will eventually be free, but that won’t happen until Microsoft has a legitimate reason to do so. And no, the current multiplayer implementations by Nintendo and Sony in no way compete with XBL.

Wii vs 360

First off, let’s just forget about Nintendo. It’s clear from their ridiculous friend code system that they have no interest in achieving the same sort of seamless multiplayer integration that Microsoft has done with Live. Nintendo is far too steeped in their irrational “family friendly” corporate philosophy–to the point where I don’t believe they want to help gamers connect with one another.

Case in point: Nintendo made a big announcement last year declaring that they were going to simplify Wii online play by using Gamespy’s technology. But for some strange reason, I can’t find any further reference to that partnership besides the initial press release. And even if they did secretly start implementing Gamespy’s technology, it’s still based on friend codes–the biggest part of Nintendo’s multiplayer failure thus far.

PS3 vs 360

So Nintendo is out, but what of Sony? I’ve written recently about their underwhelming E3 showing, and my biggest complaint was that Home was nowhere to be seen. Sure, the latest PS3 updates let you have game-specific friends lists on certain games, but that’s a far cry from Microsoft’s XBL friends implementation. Friend list support needs to be standard, not a developer option, and it needs to be universal. Home has the potential to correct these mistakes for Sony, but given that it’s release is still undetermined somewhere in 2009, it’s evident that PS3 users will be stuck with sub-par multiplayer for some time.

The failure of Home and the PS3’s overall multiplayer strategy is really the biggest argument against making Xbox Live free. After all, why would Microsoft make XBL free when so many 360 users have made it clear that they’re willing to pay $50 a year for the privilege, and there is no real competition to the service?

Breaking it down, Xbox Live costs $4.17 monthly, and that rate is reduced even further if you get a discounted 12-month card online. To most people who want to play online, it’s simply a drop in the bucket. That money also leads to better development and an overall more stable service as well. And of course, it also helps to weed out annoying kids (not that the service is free from jerkwad teens and adults).

When Will Xbox Live Be Free?

Once Sony (or in some bizarro-world, Nintendo) offers a legitimate competitor to Xbox Live, then Microsoft will be able to justify making the service free. Of course, another possibility is that we start to see MS slowly giving benefits to Silver members, while also adding goodies to Gold members. Perhaps Silver members could be restricted to unranked player matches, and actual ranked games for Gold? In my opinion, that would actually be a more than fitting compromise–at least until they were forced to make XBL completely free.

For now though, I’m content with spending money on a service that I can rely on, and one that’s clearly a cut above the rest.