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The online features, while praised as innovative, were largely considered a failure, and the Dreamcast's immediate competitor, the Play Station 2, did not initially ship with built-in networking capabilities.Microsoft, however, hoped that the Xbox would succeed where the Dreamcast had failed.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.When the service debuted, it lacked much of the functionality that later titles included, but Xbox Live grew and evolved on the Xbox and many aspects of the service were included with the Xbox 360 console out of the box, rather than through a later update.

A Gamertag used online must be unique and can be up to fifteen characters in length, including numbers, letters, and spaces.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.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 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.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.

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As Microsoft developed the original Xbox console, online gaming was designated as one of the key pillars for the greater Xbox strategy.

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