Yes, you are very wrong here. Live was a paid service since Day 1 of launch of the service on the OG Xbox. It didn't start with the 360. The PS2 was out then and had jack crap for online support. Like I said much earlier in this thread, I really feel like we are dealing with a bit of an age gap. Those of us old enough to be around during the advent of console gaming remember just how much of a mess early online console gaming was. Xbox Live was amazing in how universal it was. One friends list, messaging, etc, etc. You really did feel like you were getting a premium service.