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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.

Microsoft's 5000th patent was Live-related and gave Xbox 360 users access to watch other gamers compete against each other over Xbox Live.

Microsoft has announced plans to extend Live to other platforms such as handhelds and mobile phones as part of the Live Anywhere initiative.

The Xbox Live service is available as both a free service, known as Xbox Live Silver and a subscription-based service known as Xbox Live Gold, respectively, with most features such as online gaming restricted to the Gold service.

On November 12, 2009, Dennis Durkin, COO of Microsoft's interactive entertainment business, announced that November 10, 2009, the release of Call of Duty: Modern Warfare 2 marked the busiest day ever on Xbox Live, with over two million active users simultaneously.