Silent_Buddha
Legend
GSM voice codec used to be 13.2 kbit/s with horrible quality, now it's 12 kbit/s with much better quality. Low bandwidth compression technology has improved greatly in the last 15 years.
Xbox party chat supports up to 8 people at once, and assuming a 16kbit codec, it would require 128kbit downstream and 16kbit upstream just for voicechat. Thankfully most broadband services are way faster than that. Also, just like MSN voice chat, it'll always be p2p, not hosted. Hosting party chat is not a smart solution these days when individuals have decent broadband connections that can easily handle 8-16 people at once.
Considering some people are still limited to 128-256k upload speeds I find P2P chat highly unlikely, especially for 8 people. If that were the case, we'd hear a lot more complaining about the variable quality of the voice chat. And even with that the quality of individual users connections (sometimes quite horrible) does not affect Live chat in way that I've heard of. Other than for the isolated person.
Instead we hear the opposite which is that quality is universally decent, which points to dedicated voice chat servers.
VOIP is very latency sensitive, bandwidth can only help so much. Relying on P2P chat is going to lead to some seriously variable chat quality.
Regards,
SB