To start off, I'd like to say that X-Box Live is amazing and worth every penny. Online gaming is incredibly fun and quite a good way to pass time.
That aside, there are downsides to X-Box Live that can be avoided through prepaid cards. Number one, you always run the risk that unwarranted transactions will be made if your credit card information is stored on your X-Box 360 system. It may not happen all that often, but it's best to avoid it all together.
The biggest reason to buy prepaid Xbox Live card is the renewal process that happens when you don't use one. If you order X-Box Live through your system, it'll renew every time your subscription runs out. This wouldn't be a problem except that it's not that easy to cancel. Instead of canceling through your system, you have to go through the hassle of actually calling X-Box Live support. Even then, depending on the representative you get, you may be hassled to keep your subscription because they really don't want you to cancel it. I'm guessing that's part of their job to convince you to keep it, but it still is frustrating to the person that is trying to cancel it.
You'll have to go through this process every time you want to cancel if you don't use a prepaid card. Is that hassle really worth it? I don't think so. Therefore, avoid all of the problems by simply buying a prepaid card. You won't be sorry.
UPDATE: (3/6/2011): I updated this review about a year ago pointing out that you could disable the subscription on X-Box Live's website. As of this update, they've taken that feature away again. I'm guessing Microsoft must have seen a major increase on people who canceled their subscription, thus now forcing you to call their customer service hot-line again to cancel. Even if they add it back, just save yourself the hassle and get a prepaid card. You never have to worry about dealing with customer service that will try their hardest to get you to stay on as a recurring customer. Amazon also gives great deals throughout the year. You could save yourself $20 to $30 sometimes just by checking to see if Amazon has these prepaid cards on sale. What's not to love about that? Xbox 360 12 Month Live Gold Card
From what I can find this is the cheapest cost per month option available for a live gold subscription. Depending on the current price, it ranges from $2.9158 to $3.3325 per month. What I don't get is why this credit card sized subscription card comes in such wasteful packaging. It comes in a rather large plastic packaging, which requires it to be shipped in a box. You get free shipping, but how wasteful. Why doesn't amazon just offer the code online and not eat the cost of shipping and at the same time be a little greener?
Find the card on sale every so often each year. Don't pay the full price. The Xbox Live Gold is stellar and I love it, but I don't see how they charge $50 or more a year and you don't get any freebies...other than advanced demo downloads. They need to throw a bone for a free song or discounted DLC or a free rental every so often. I have spent well over $1000 in my 3 years with the Xbox 360 on peripherals, games and downloads. 2% of my money spent as a gift would have paid for 1600 points of DLC...that would be a nice thank you from Xbox 360 for keeping their community alive and well.
This is the BEST deal I have ever found on the Xbox Live 12 Month Subscription.
I looked 6-10 different places for a deal on this and only found 1 close to this and that was wal-fart but I dislike shopping there so Amazon was the place to go.
This should be a guaranteed buy and you CAN'T beat the Price!!!
I was worried that the card would not work in Canada, but it seems to be fine. Have been using XBOX LIVE for about a week with no problems, but will hang on to the card, as advised by another reviewer, just in case.
There's nothing more fun than being able to go online everyday day and being able to talk to and play with friends around the world. Xbox live is also a great way to meet new people and make new friends. This can be hard because there are so many immature people on Xbox Live. I would warn anyone with small children or those who do not like foul language to be careful because never in your life will you hear the F bomb or the N word as often as you do on Live. Of course there are parental settings and you can keep communications just between friends but still this is one of the biggest downfalls to Live. Another problem with Live is customer service. Yes, you can e-mail them or call them at 1-800-4myxbox (good luck getting help there) but the service is terrible. Even with these downfalls I still have to strongly recommend Live because being able to play videogames over the internet and keep up with friends and family that live far away is too much fun to pass up.'
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