I don't really agree with that. Sure, I have a Gold account, but I don't actually need one. Of the three people in my household, I'm the only one with a gold account, and I don't play online, pretty much at all. Netflix? I use it through my Tivo, much better interface. Getting stuff a week early? meh.I think Live, in and of itself, should be enough to incorporate into the cost of your console. Afterall, after 5 years of Live, you've added significantly to your investment.
Last I saw someone on here worked out that roughly half of the Live members were paying members. That obviously shows that it's not a requirement.
It would be interesting to see how many WiFi adapters were sold too. I suspect less than a lot of folks on here would expect.
My streaming problems have to do with having the TV and Router at opposite ends of the house, with 1 floor and two metal-embedded walls (the house ducting) between them, in an extremely EM noisy environment. I was lucky to stream a 128Kb MP3 without dropouts. I had huge packet loss due to Wifi interference and it was just unusable. As more and more people get Wifi, the interference can only get worse. I have had a lot less trouble since I upgraded to Wireless-N, but the xbox adapter or PS3 wouldn't support that anyway.Why cant you imagine using wifi? My router is 80 feet from my TV. Wifi is so easy, and running cable under or thru the house isnt. Some people enjoy that type of thing, I am not one of these people. And not everyone needs to, some people have their 360 right next to their router. How they dont have it as standard, is silly to me. They are the leader in online gaming for consoles, and they dont have wifi. The Wii, the least online console has it, for $250 since day one.
Streaming was unusable? Something must have been wrong, thats been done for years on both consoles. I do it, again from 80 feet away. Movies, music, anything.
Sure you dont have to install games, you have the option for some, for faster load times. But not downloading demos? Ugh. Now thats something I couldnt imagine. New XBM? Need an installation for that too.
The 360 is obviously cheaper, and can play all the games with the Arcade unit. Im sure some people are perfectly happy with it like it is. And then some will want to update when they get more money. Yet, after you factor in the prices (for just two of the most common upgrades), its not cheaper. I dont know anyone with a 360 without a HD. And most have Wifi. Would you like rechargeable batteries? Well, pay up for those too.
Also, there's no reason to buy the XBox Wifi adaptor. You can get a Wireless Gaming Adapter or a wireless bridge for $50, and not be beholden to the Wifi standards dictated by the console manufacturer. Especially since I have multiple items in my AV rack that need a net connection. (HD DVD player, Tivo, XBox)
The problem is we're judging the cost of the console by our over-the-top hardcore gamer concepts. We can't imagine not having Live Gold, but only 66% of the XBox owners even signed up for Live, and only roughly half those bought gold. We feel a hard drive is required, but high sales of the arcade version seem to indicate otherwise. Sure, maybe those folks eventually buy a hard drive, but they can buy a 20G for $35, or a 120G for $119, or even less if they're willing to brave ebay.
So your $100 + $100 is more like $76.99 (amazon) + $29 (ebay 20GB) or $65 (ebay 120GB).