Check out the new Xbox Live for dummies

So what is Xbox Live?
Xbox Live is Microsoft's online gaming service for the Xbox 360, allowing gamers to play online among other things. The service was launched in 2002 for the original Xbox and, although it wasn't the first such service, kick-started console-based online gaming.

So, is that it?
While online gaming is the main draw, Xbox Live has plenty to offer for everyone. Gamers can download the latest trailers, purchase downloadable games and chat with friends. Other established features, such as Facebook, Twitter, Zune, last.fm and the video marketplace will not be available in South Africa right away according to Microsoft.
There are also region-specific features on Xbox Live. US gamers have access to features such as ESPN, Netflix and Hulu while UK users have access to the Sky Player, which features live TV as well as on-demand content.

What do I need?
You'll need a broadband connection (although 384Kb/s will suffice for the most part) and an Xbox Live account. A free Silver account can be created to download content and chat online, although you'll need to splash out on a Gold account if you'd like to play online, gain early access to content, get exclusive deals and access other features.
You'll also need to purchase Microsoft Points if you'd like to buy content on Xbox Live, such as themes, avatar clothing, Arcade titles and game add-ons. These will cost R300 for 2100 Points, with most Arcade games and add-ons costing between 400 and 1200 Points.

I need to pay to play online?
Yes, you'll have to put down some cash to play online. Gamers that hooked themselves up to Live via "unsupported means" could previously pay for a 12-month UK membership for about R400. But the local version of Live will set you back R600 for a year's membership – a rather steep price increase. In an attempt to off-set the price difference, anyone purchasing a year's membership at launch will receive two months free.
The one distinct advantage that the PlayStation Network has is that you don't have to pay to play online. But the consensus is that Xbox Live offers a better service (fanboys be gone!).