Xbox online fees: The cost of Live-ing

C|Net | at | by Mike

Microsoft will spend $2 billion in its effort to make Xbox the leading video game console, a company executive said Monday. John O'Rourke, marketing director for Microsoft's games division, said the company will spend that much to build out the network for online Xbox gaming and to fund research and development for the next version of the console and support for game developers. Microsoft representatives had already said the company would be spending $40 to $50 per game machine--which Microsoft already sells at a loss--to get the Xbox online service running.

Microsoft will sell a $49.95 Xbox Live package, O'Rourke said, which includes a 12-month subscription to the service and a headset microphone that connects to the Xbox for voice chat. The fee does not include a broadband connection, which is required to subscribe.