I wanted to let you know that on April 15, 2010 Microsoft will discontinue Xbox LIVE service for original Xbox consoles and games, including Xbox 1 games playable on Xbox 360. Our first step in this process will be to turn off auto-renewals for those members who only use Xbox LIVE on a v1 Xbox. While I can’t comment on the specifics, this change will allow us to continue evolving the LIVE service with new features and experiences that fully harness the power of Xbox 360 and the Xbox LIVE community. We did not make this decision lightly, but after careful consideration and review we realize that this decision will allow us unprecedented flexibility for future features.
Unfortunately, this is how all closed systems are destined to end. It's sad to see this happen so soon, but expected from a company like Microsoft who integrates this kind of forced consumer upgrade path into the business model. When they want you to upgrade they just decide to stop supporting the older version. If the product has DRM, they just turn off the activation servers and you can never use it again.
This is one of the reasons why I've been so hesitant to ever buy anything on iTunes. It's only recently that I've started downloading episodes of my favorite TV shows. One day iTunes will take their activation servers offline. And when it does the billions of pieces of content that have been downloaded will be rendered useless.
Modern games like EverQuest and World of Warcraft will suffer a similar fate. The companies that run them will turn off the servers one day and all your information will be lost and your software becomes useless. What about massive collection of games you bought through Steam? One day those will likely be rendered useless as well. But in 20 years I'll still be able to play Diablo II over a LAN, and it will still be awesome.
Xbox LIVE, iTunes and Steam are great for their convenience but you always have to remember that you don't really "own" anything you buy from an proprietary service. You just pay for a license to use their content until they either decide they are going to force you to upgrade or they go bankrupt.