I am kind of confused about what Xbox live is.
Is it like Wi-Fi on the Wii or are they points.
Can someone explain it to me?

Xbox Live (trademarked as Xbox LIVE) is an online multiplayer gaming and digital media delivery service created and operated by Microsoft Corporation. It is currently the only online gaming service on consoles that charges users a fee to play multiplayer gaming. It was first made available to the Xbox system in 2002. An updated version of the service became available for the Xbox 360 console at that system's launch in 2005. 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. Microsoft has announced plans to extend Live to other platforms such as handhelds and mobile phones as part of the Live Anywhere initiative. With Microsoft's new mobile operating system, Windows Phone 7, full Xbox Live functionality is integrated into new Windows Phones that launched in late 2010.
The Xbox Live service is available as both a free and subscription-based service, known as Xbox Live Free and Xbox Live Gold respectively, with several features such as online gaming restricted to the Gold service. Prior to October 2010, the free service was known as Xbox Live Silver

http://en.wikipedia.org/wiki/Xbox_Live

AndyGer : Reply to: Xbox Live (trademarked as Xbox LIVE) is an online multiplayer gaming and digital media delivery service created and operated by Microsoft Corporation. It is currently the only online gaming service on consoles that charges users a fee to play multiplayer gaming. It was first made available to the Xbox system in 2002. An updated version of the service became available for the Xbox 360 console at that system's launch in 2005. 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. Microsoft has announced plans to extend Live to other platforms such as handhelds and mobile phones as part of the Live Anywhere initiative. With Microsoft's new mobile operating system, Windows Phone 7, full Xbox Live functionality is integrated into new Windows Phones that launched in late 2010. The Xbox Live service is available as both a free and subscription-based service, known as Xbox Live Free and Xbox Live Gold respectively, with several features such as online gaming restricted to the Gold service. Prior to October 2010, the free service was known as Xbox Live Silver.

I appreciate the info but please don't copy and paste off of wikipedia, that's called plagiarism.

dkmec20 : I've added the link

dkmec20 : in a more understandable explanation you need to pay to use online features.you can buy different packs giving different features and amounts of time.originaly people claimed this cost was due to microsoft running the game servers resulting in less lagg.that turned out to be a fanboy invention.you still need to have an internet provider,all the payment does is allow you to connect to there server.
While there have been attempts to do multiplatforming,they caused a deal of disgust with pc users when they tried to charge them for it.i believe this resulted in them waving the fee.it dosent cover many games. Personaly i feel the subscription charge is a major rip,and is one of the reasons i never bought an xbox.

thenumberone : I heard there are Microsoft points that are kind of similiar to Wii Points except you pay for Xbox live with the Microsoft points. Is this correct?

dkmec20 : i dont actualy know what wii points are.as for paying for xbox live you have automatic renewal,when youre subscription runs out they take the money from your account,you would be able to buy more microsoft points and renew from the xbox though im certain.my friend got stung when he sold xbox,he hadnt turned off auto subscription which is on by default,they wouldnt refund him, he wasnt happy.
Edit-any money you add to your account purchases microsoft points,yes,these buy add ons and games and id imagine xbox live if you wanted.

thenumberone : Okay thanks for clearing this up, I wasn't positive at first.

alexanyways : You can close this now.