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On November 12, 2009, Dennis Durkin, COO of Microsoft's interactive entertainment business, announced that November 10, 2009, the release of Call of Duty: Modern Warfare 2 marked the busiest day ever on Xbox Live, with over two million active users simultaneously.

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In June 2014, Microsoft retracted the Xbox Live Gold requirements to download streaming media apps (including Netflix, Hulu, You Tube, Internet Explorer, Skype, and others), though various rental or subscription fees may still apply.The packaging for playable Xbox Live titles on the original Xbox console featured the trademark gold bar underneath the Xbox header.Tom Clancy's Splinter Cell and Brute Force sported a Live "bubble" design, as they only featured downloadable content.As Microsoft developed the original Xbox console, online gaming was designated as one of the key pillars for the greater Xbox strategy.Sega had made an attempt to capitalize on the ever-growing online gaming scene when it launched the Dreamcast video game console in 1999, including online support as standard, called Sega Net and Dreamarena.It was changed later, wherein all Xbox Live titles included the universal gold Live bar.

By the time of the Xbox 360, all titles were required to provide at least a limited form of Xbox Live "awareness".

Steve Ballmer and Bill Gates both had a vision of making premium download content and add-ons that would attract many new customers.

Based on this reasoning, the console included a standard Ethernet port (10/100) in order to provide connectivity to common broadband networks, but did not include a modem or any dial-up support, and its online service was designed to support broadband users only.

Gamertags can be changed using an Xbox One or Xbox 360 console (first time is free, then for a price of £8 / ), the Xbox 360 supports eight Xbox Live-enabled profiles per memory unit and thirty-two profiles on the hard drive.

A player's Gamertag account status can be checked using a variety of online tools, which is useful especially when looking for a new Gamertag, or confirming that a Gamertag exists.

The company determined that intense online gaming required the throughput of a broadband connection and the storage space of a hard disk drive, and thus these features would be vital to the new platform.