How Xbox Live Works

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Microsoft launched Xbox Live to much fanfare in 2002, and the hype seems justified. Last year, the number of users topped 2 million. And the success of Xbox 360 has increased both the number of online gamers and the amount of time they spend online: almost half of all Xbox 360 players have an Xbox Live membership {ref,ref].

This Xbox Live still offers great head-to-head gameplay, including a matching service designed to give users the best game possible. But the Xbox 360 version also includes the ability to read e-mail, watch movies, view photos stored on your PC, listen to music, and more. Microsoft hopes that the latest version of Xbox Live will appeal to both gamers and non-gamers alike to become a digital media hub.

In this article, we'll learn exactly what users get out of the Xbox Live system and find out how to set it up.

Xbox Live Basics

Owners of Xbox and Xbox 360 game systems can connect to the Xbox Live network via a broadband connection (such as a cable modem). Microsoft's servers allow players to compete against or cooperate with other players on the system. Xbox Live also allows personal messaging, voice chat, online scoreboards, ranking systems and downloadable content.


Photo courtesy HowStuffWorks Shopper
The top five most popular Xbox Live games

Xbox Live games come in two flavors: Live Enabled and Live Aware. A Live Enabled game uses all of the features of Xbox Live. You can play against other people, participate in tournaments and have your scores publicly ranked. A Live Aware game doesn't allow you to play against other people, but you can log in to the Xbox Live system while you're playing to receive chat messages and post high scores depending on the features that the game's developers have included.


Photo courtesy Xbox
Marketplace downloads include add-ons for games
like "Halo 2."

On the Xbox Live Marketplace, gamers can purchase and download entire games, new game levels, new characters, themes for the Xbox Live Dashboard, images and more. Many of the downloadable games are puzzle games like "Bejeweled" or classic arcade games like "Joust" and "Gauntlet" -- in fact, the downloads section is called the Xbox Live Arcade.


Photo courtesy Xbox
In the Arcade, users can download new and classic
arcade games.

Microsoft has also integrated Xbox Live and MSN Messenger. Users can link their Gamertag to their MSN ID or Hotmail e-mail account and receive notifications on Xbox Live when their friends IM them or when they are invited to join a game. Users can also receive a notification when there are new games in the Arcade.

Next, we'll learn about the new levels of Live membership that Microsoft rolled out with the release of Xbox 360.

Silver and Gold


Photo courtesy Xbox
With the introduction of Xbox 360, Microsoft redesigned Xbox Live. Part of this redesign includes the creation of two levels of Live membership: Silver and Gold.

Membership to Silver is free. With it, players can:

  • Create a profile and a Gamertag
  • Create a friends list
  • Send and receive text and voice messages
  • Access the Marketplace and Arcade
  • Access Massively Multiplayer Online Games (usually for an additional fee)

Gold membership costs $50 per year and includes all of the features of Silver as well as the ability to:

  • Access exclusive Marketplace content
  • Use the TrueSkill matchmaking service to find players of a similar skill level
  • Use a more extensive feedback and friends list system


Photo courtesy HowStuffWorks Shopper
Depending on which version of Xbox you purchase, you may need additional hardware or software.

An Xbox 360 costs $399 (the $299 core version doesn't include the Ethernet cable or the hard drive, both of which are required for Xbox Live). This includes a 20 GB hard drive, Ethernet cable, voice chat headset and a free month of Gold membership. There are also Xbox Live starter packages available that include the headset, a Gold membership, Marketplace points and access to a game at the Arcade. Once the free membership period has passed, it costs $50 per year for a Gold membership.

Players purchase downloadable content with points, which they can pre-purchase with a card that is similar to a phone card. This allows people without credit cards to buy downloadable content. A 1600 point-card costs about $20. Games in the Arcade cost 400 to 800 points, while gamer pictures cost 20 points and a theme for the Xbox Live Dashboard (the system's graphical user interface) costs 150 points. Demos and trailers for upcoming games are also available, usually for free.

Live Technology

The Xbox 360 connects to the Xbox Live network through a built-in Ethernet port. Xbox 360 Live is a broadband network, which helps improve the performance of online games. The 360 is also WiFi ready, supporting IEEE standards 802.11a, 802.11b, and 802.11g.



Images courtesy Xbox
Products such as routers or modems sporting either of these logos have been tested for use on Xbox Live. The logo on the right is the "old" logo, now being phased out.

In its current configuration, most Xbox Live content is routed through Microsoft's Xbox Live servers. For the Xbox Live launch in 2002, Microsoft installed massive arrays of servers in four locations in the United States, Japan and the United Kingdom. The network costs alone were estimated at $500 million [ref]. The servers are physically secure, with multiple levels of security. The entire system is controlled from Xbox Live headquarters in Redmond, Washington. Microsoft is so security conscious that they don't give out specific information about types or exact numbers of servers used.

There are a few exceptions, however. Initially Electronic Arts did not produce Live Enabled games for Xbox because Microsoft wouldn't allow them to use their own servers. Eventually, Microsoft relented and EA has begun producing Live Enabled games in their popular sports line, as well as games like "Burnout 3." However, the rollout for "Burnout 3" was plagued with severe problems, including server timeouts, Xbox crashes and poor performance.

There are plans to open up the Xbox Live Marketplace to user-created content, making the Marketplace more of a peer-to-peer network. There is no date for implementing that feature, but Microsoft plans to carefully screen and certify all user content to make sure it meets community standards and is virus-free.


Setting up Xbox Live is usually a simple process.

Xbox 360 is "Live-ready" out of the box. In most cases, installation and setup is simple. You'll need a router if you use your Internet connection for something other than Xbox Live. A router allows multiple devices to use your Internet connection at the same time. The Xbox will plug into an outlet on the router. Router configuration can vary greatly, depending on the make and manufacturer. Microsoft provides some guidance here. If you're only going to use your connection for Xbox Live, you can just run the included Ethernet cable from the Xbox 360's port to your cable modem.

Both the Xbox and Xbox 360 use the same Xbox Live system, with Gamertags shared across both consoles. However, an Xbox console can't play Xbox 360 games, and Xbox games aren't capable of using some of the features that were added to Xbox Live late in 2005 for the rollout of Xbox 360.

Rated Xbox

Many of the problems with Xbox Live are the same ones encountered in any other online game setting. The most prevalent problem is the presence of griefers -- people who seem to derive pleasure from ruining other people's fun. Their behavior can range from constant foul language, racist taunts and playing the game in an annoying, disruptive way. For example, in a racing game, a griefer might intentionally crash into the other players' cars instead of racing. Swearing can be a serious problem in games when players are using voice chat. It can be muted, but then the players lose the use of the voice chat. Some games allow you to mute individual players.


Images courtesy Xbox
Your best defense against griefers is a strong Friends list.

Xbox Live supports a feedback system that allows users to rate other players based on their in-game behavior. Microsoft reports that they review the feedback and punish players who receive a significant number of complaints. Punishments range from warnings to suspensions that can last up to two weeks. Microsoft can ban players who abuse voice chat from using the service.

Users can also designate players they want to avoid and players that they enjoyed playing with. The TruSkill matchmaking software will try to accommodate the user's wishes when setting up games. The Friends list is probably the best weapon against griefers. A healthy list of friends who have a reputation for playing well can ensure a fun experience.

A more insidious problem is cheating. Mod chips were widely available for installation in the original Xbox. These chips could allow the Xbox to play games from different regions, or they could alter it so that the player had an advantage in online games. The Xbox 360 has not been hacked yet, and no mod chips are currently available, but there are reports of groups working hard to develop them. Microsoft has taken great pains to make the Xbox 360 mod-proof. Whenever an Xbox 360 connects to the Xbox Live network, the system checks and matches individual codes on the processor and the hard drive. It also checks the system BIOS. If anything has changed, the system blocks that 360 from ever accessing Xbox Live.

Another common problem is poor performance. Lag and latency can slow some games to a crawl, or cause servers to time out. Although this can be due to deficiencies with Microsoft's servers, it is usually a problem with Internet traffic in general, or with the connections used by the participating players. If the player hosting the game sets the number of players too high, or doesn't have enough upstream bandwidth, the game will run poorly.

Some Xbox Live users are concerned about privacy. The Gamecard interface allows other players to see what a user is doing, because the current activity, such as "Viewing Pictures," is displayed on the card. You can disable this by adjusting the privacy settings, and there have been no reports of sensitive information such as an address or credit card number being stolen from an Xbox Live account.

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