Maybe we're looking at this from completely different angles, but I don't even see how the term "monopoly" applies to this particular situation. Microsoft makes the Xbox 360 console specifically to work with content (i.e. games) created for the 360, just as every gaming console from the NES onwards has only worked by default with content meant specifically for it. Xbox Live is the service provided by Microsoft for its own specific hardware, just as the DS and Wii's matchmaking services are provided by Nintendo and Home (ha) is provided by Sony. It's literally part and parcel of the whole experience...if you buy an Xbox, you're also buying Live (or at least the free level of it). And no secret is made of that; in fact, it's one of the console's selling points. As such, Microsoft has the right legally, and I would suggest morally, to establish the terms and conditions for using Live. If all you were concerned about when purchasing a piece of gaming hardware was buying a completely-open system, you wouldn't be buying a console in the first place. From where I'm sitting, complaining about Xboxes having only Live available as a networking option by default is just like complaining about only being able to get Windows patches from Microsoft Update.