Xbox Live "Should" Be Free, but why?

I’ve come across the argument that Xbox LIVE should be free quite often.  I can’t remember these arguments when Xbox LIVE first launched.  It’s likely due to the fact that there was no competition when it launched or rather no real alternative to gaming online with your console.  However, now that Xbox LIVE is the dominant arena for online console gaming, the arguments for “FREE LIVE” have begun.  Pay no attention to the ability to voice message/chat, the universal friend’s list, online features and whatever you do totally forget about the free system updates that happen.

I hope people understand why PlayStation Online is free.  It has to be free because if it weren’t, no one would pay for it.  If they presented anything other than “free” to compete against Xbox LIVE, they’d be toast.  The funny thing is that it’s still not comparable to Xbox LIVE even while offering it for free.  If it was the great alternative to Xbox LIVE that a few suggest, I’d imagine we’d hear a little bit more about it but we don’t.

Games for Windows - LIVE was just recently announced as being free and the uproar grew even louder.  Well, that’s PC online gaming.  It has always been free so there’s no reason why it shouldn’t have been to begin with.  But why were there rumblings soon after that Xbox LIVE has no justification to charge simply because GFW LIVE is now free?  It’s PC online!  When has it not been free in the PC realm?

I’m very interested.  I’m very curious about your reasons why Xbox LIVE should be free.  Convince me.  Help me understand this madness.  I’m all for getting things free don’t get me wrong but as far as I can tell, no one has a good reason that makes sense.  I feel that if Xbox LIVE were free, we’d hear a bunch of “if only Xbox LIVE had this or that then I would pay for LIVE if it had this”.  (which would be things it already has)

Some of the arguments that I will ignore are listed below.

- Because PC online is free
- Because PlayStation Online is free
- Because there are no dedicated servers
- Because Steam does (insert thing) for PC users

Xbox LIVE and PC online are two separate animals and shouldn’t be compared.  I understand what Steam does for PC but what does Steam do for console gaming?  Nothing.  That’s why that argument will be ignored.  Talk about the PlayStation Network if you must but I’d wager, based on several friends who don’t bother playing online with it, that it’s not what Xbox LIVE is in comparison.

So let’s hear it then.  I’d love to save my $4.17 a month too.