KraftSlu, not everybody has the money to afford a broadband connections, and it's also i portant to remember that in certain countries in Europe, the broadband services are not available. For example, in the core of Rome, the biggest city in Italy, there is no possibility to access broadband services. The same happens in areas of England, France, Spain.
Adding to that, if you limit the game modes available to 56K users, they can perfectly enjoy the online experience with little lags. I did play from Europe, on a dial-up connection, against North American and Japanese players... and lags were extremely, extremely rare.
Microsoft is clearly trying to create a fan base for the "future", because they know this is not yet the generation of consoles that will see online gaming as the #1 reason of success. The whole Xbox project is something aimed to make money on the long run, maybe when the next console will be released. After all, that's Bill's and Microsoft's philosophy... you always have to invest on the future, because the ones too focused on the present market can have very bad surprises in the next future. That's why Microsoft was lightly affected by the collapse of the Internet economy.
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