Xbox Live

When the Xbox 360 launched in November 2005, Xbox Live, Microsoft's online gaming service, also went through a major upgrade. In addition to the established premium subscription-based service (Gold), Microsoft added a basic non-subscription service (Silver), which enabled users to create a user profile, access Microsoft's Xbox Marketplace and Live Arcade, join message boards and talk to other members. Although the Silver package does not generally support multiplayer gaming, some games that have their own subscription service can be played on this level of account.

The Gold package has the same features as Silver, in addition to online game playing capabilities, for an annual cost of £39.99 (US$49.99 or CD$59.99). Previous subscribers to the service were able to transfer their original profile (including their friends list and games history) to the new system by linking their gamertag to a Windows Live ID. As of December 31, 2006, Xbox Live has over 5 million subscribers.

Arcade

Xbox Live Arcade is a service operated by Microsoft to distribute arcade video games online to Xbox and Xbox 360 owners. In addition to classic arcade games, such as Frogger, Gauntlet and Pac-Man, the service offers original games and games from other consoles, such as the Sega title, Sonic the Hedgehog or the PlayStation's Castlevania: Symphony of the Night. First launched in November 2004, the service offers games for about to buy through using Microsoft Points (a scrip used to reduce credit card transaction charges), although users can try games for free before they buy. Xbox Arcade was re-launched in November 2005, offering new games and features. The games are generally fairly small, and are aimed toward more casual players, including card and board titles, puzzle games, retro arcade favourites and action games.

Marketplace

The Xbox Live Marketplace is an area from which Gold or Silver Xbox Live users can download purchased or promotional content, such as game and film trailers, Xbox Live Arcade games, gamer tag images and in-game weapons, items and costumes. Items are downloaded to a hard drive or memory unit and paid for using Microsoft Points, with users also able to view items available to download through a PC via the Xbox Live Pipeline website. It is thought that approximately 70% of Xbox Live users download items from Marketplace.

Video

In November 2006, Microsoft announced Xbox Live Video, an exclusive video store accessible through the console. Users based in the United States are able to download standard-definition and high-definition TV programmes and films to their hard drive to watch through the Xbox 360 console. Films expire at the end of the first 24 hours after the film has begun playing, or 2 weeks after download, whichever happens first. Television episodes can be purchased to own, and are transferable to an unlimited number of consoles.

At launch the service offered 200 hours of high definition footage and 800 hours of standard footage. Content is offered from sources such as VH1, MTV, Comedy Central, CBS, Turner Broadcasting, Paramount and Warner Bros. Downloaded files use 5.1 surround audio and are encoded using VC-1 for video at 720p, with a bitrate of 6.8 Mbps.