Xbox Live (trademarked as Xbox LIVE) is an online multiplayer gaming and digital media delivery service created and operated by Microsoft Corporation. It is currently the only online gaming service (on consoles) that charges users a fee to play multiplayer gaming. It was first made available to the Xbox system in 2002. An updated version of the service became available for the Xbox 360 console at that system's launch in 2005. On the Windows platform, the service is named Games for Windows - Live, which makes most aspects of the system available on Windows computers. Microsoft has announced plans to extend Live to other platforms such as handhelds and mobile phones as part of the Live Anywhere initiative.

History

Xbox 360 Dashboard As Microsoft developed the original Xbox console, online gaming was designated as one of the key pillars for the greater Xbox strategy. Sega had made an attempt to capitalize on the ever-growing online gaming scene when it launched the Dreamcast video game console in 1999, including online support as standard. Nevertheless, due to lack of widespread broadband adoption at the time, the Dreamcast shipped with only a dial-up modem while a later-released broadband adapter was not widely supported or widely available. Downloadable content was available, though limited in size due to the narrowband connection and the size limitations of a memory card. The online features, while praised as innovative, were largely considered a failure, and the Dreamcast's immediate competitor, the PlayStation 2 did not ship with built-in network adapters.

Microsoft, however, hoped that the Xbox would succeed where the Dreamcast had failed. The company determined that intense online gaming required the throughput of a broadband connection and the storage space of a hard disk drive, and thus these PC-style features would be vital to the new platform. This would allow not only for significant downloadable content, such as new levels, maps, weapons, challenges and characters, to be downloaded quickly and stored, but also would make it possible to standardize bandwidth intensive features such as voice communication. Steve Balmer and Bill Gates both had a vision of making premium download content and add-ons that would attract many new paying customers to earn money. Based on this reasoning, the console included a standard Ethernet port in order to provide connectivity to common broadband networks, but did not include a modem or any dial-up support, and its online service was designed to support broadband users only. Critics scoffed at the idea, citing poor broadband adoption at the turn of the century.

When the Xbox launched on November 15, 2001, the as-yet unnamed online service was destined for a Summer 2002 deployment. Xbox Live was finally given a name at E3 2002 when the service was unveiled in its entirety. Sound dampened booths and broadband connected Xbox consoles - featuring an early version of Unreal Championship - demonstrated the service on the show floor. The Epic title was one of the flagship titles for the service, which was slated for a debut on November 15, 2002, marking the anniversary of the Xbox launch. Microsoft announced that 50 Xbox Live titles would be available by the end of 2003. Utilizing the required broadband bandwidth, Xbox Live featured a unified gaming "Friends List", as well as a single identity across all titles (regardless of the publisher), and standardized voice chat and communication; a feature that was still in its infancy, even on the PC.