I cant believe there are people on here defending Microsoft on this one. I pay for Xbox Live Gold because Microsoft requires it to play online, and I know Sony does not require that on ps3, but we don't have the same problems with lag, or being unable to sign into our accounts for over a month because hackers brought the network down and stole credit card information from everyone. However, it doesn't make sense they ask you to pay Live Gold to be able to use the Xbox Apps, which aren't just Netflix. It is Hulu, Last.fm, Internet Explorer, VUDU Videos, HBO Go, Youtube, etc. None of those apps have any kind of impact on Microsoft's servers. I don't care because I pay for Live Gold, and I have been subscribed for over 5 years, but for the next generation war, Microsoft is going to have to offer all those services for free, and offer more than just online gaming to those of us who pay for Xbox Live Gold+Xbox Music Pass, like big discounts on Games, Movies, Music and Video Rentals, early access to stuff coming out, etc. If they won't offer anything new, then they should lower the price of the annual subscription, which they increased over 1 year ago, and they haven't offered any extras or improvements after doing so.