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

On November 15, 2007, Microsoft celebrated Xbox Live's 5th anniversary by offering its then over 8 million subscribers the title Carcassonne free of charge and awarding gamers who had subscribed to Live since its inception 500 free Microsoft Points.

In February 2013, Yusuf Mehdi, corporate vice president of Microsoft's Interactive Entertainment Business, shared that Xbox LIVE members now number 46 million, up 15 percent from a year ago, during the Dive into Media conference in Southern California.This would allow not only for significant downloadable content, such as new levels, maps, weapons, challenges and characters, to be downloaded quickly and stored, but also would make it possible to standardize bandwidth intensive features such as voice communication.Steve Ballmer and Bill Gates both had a vision of making premium download content and add-ons that would attract many new customers.Utilizing the required broadband bandwidth, Xbox Live featured a unified gaming "Friends List", as well as a single identity across all titles (regardless of the publisher), and standardized voice chat with a headset and communication, a feature that was still in its infancy.Leading up to the launch, Microsoft enlisted several waves of beta testers to improve the service and receive feature feedback. (which never was released officially) and NFL Fever to beta test.

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The service was extended in 2007 on the Windows platform, named Games for Windows – Live, which makes most aspects of the system available on Windows computers.

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