Why do i pay for xbox live but the Xbox servers **** ****.

Better question is why do we have to pay for Xbox Live at all period? You don't have to pay to play on any game on PC. Yeah I know, playing too use the servers and maintenance of those servers.

Xbox Live has been a paid service since it first debuted in 2002.

Online services do cost money to run for consoles and Xbox Live is actually maintaining dedicated networks and servers. This is why you are paying a fee.

Not sure...

But hey this is why you pay for xbox live right great servers and stuff.... Oh no wait

I never mentioned online game servers for that very reason. What Xbox LIVE provides is matchmaking service to get you into servers full of people closer to your skill level. From there, the servers are handled by a hosting player or by the game developers'
servers, as you mentioned. The online community on other consoles is nothing like Xbox LIVE's. From experience, I've found LIVE to be a much better online environment, like a gated community. I don't mind paying extra for that.

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Why do they have ads when you pay for Gold? Because you pay for Gold. You have money. People with money are more likely to buy things than people without money, right? Why wouldn't any business capitalize on that? Cable TV is a paid service, and their
channels have commercial breaks. That's par for the course, really.