I originally did not want to get Live on my first Xbox due to having to pay for it. I eventually did when Halo 2 came out. I had always played for free on my PC. Like Bane v2 said, PC gaming is not free for everyone. Yes, you can play PC games online and never pay a cent more than your internet fees, but somebody is paying for those servers. Even networks like Steam just link you to a list of servers available.
I also think the average PC gamer ismore tech savey than the average console gamer. In PC gaming you have to do a little bit more than pop a disk in a tray. Maybe PC gamers tend to be a little older than console gamers as well. Due to this you get people that will host dedicated servers. You get people that build game mods for fun. (Thanks to the guys that created Counter Strike) People that will create new maps for games. Of course with a lot of these mods and user created content, you have a lot of people that don't understand how to install/use/take advantage of it.
The developers that run their own free networks tend to only run them for a certain life cycle of the game. Take EA for instance, they tend to only run the Madden networks for a few years. Then they want you to go by the newest version so they close the servers for the old versions.
Consoles are generally made to be easy to operate for as wide a range of people as possible. That is why the console's online service needs to be easy to use, and dedicated(by this I mean always have available games), so that all its user base canuse its features. I have all the next gen systems andLive is head and shoulders above the PSN andNintendo network. I am sorry for those that have to pay more than we do in the US for Live, but I definately feel it is worth the cost for those of us in the US.
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