For the record, here's the *REAL* difference between Xbox Live and PSN/Nintendo wifi:
Xbox Live is an "always on service" built to withstand thousands of connections at the same time. Live's primary hardware backbone is thousands of servers in data centers all over the world. This ensures that most players are connecting to a server that is close to them, reducing lag and increasing the chance that they'll be playing with players in the same area and with similar connection speeds - this is also why it is not free.
PSN and Wifi do none of that; most games use P2P and are somewhat slower to connect.
By default, Live connects to the internet and maintains a connection for all of its functions. Back in 2003 MS invested millions putting in servers in data centers all over the world so that every region can get a fast connection to the service and VoIP as well.... not unlike what Blizzard has done with World of Warcraft. PSN and Nintendo have nothing like that, hence the reason that both services dial in periodically to maintain minimal functions. Matchmaking is *significantly* faster on Live compared to PSN, and voice chat is VoIP...much clearer than the chat that PSN or Nintendo offer (which don't support VoIP)
PSN and Wifi aren't set up to handle the volume of connections at the rate that Live can...they don't have the bandwidth to run it. And if they do decide to update for that kind of load, chances are it won't be free. Right now this is evident when using PSN - comparing trophies requires a connection/download penalty, and you can only talk with players if you're ingame or outside in a chat room.
For the record, Live is not set up to be exclusively P2P...games can and have used their own servers for years. On the flip side, most network games on PSN are also P2P but I don't think anyone would agree that the performance is better than Live's.
People bashing Live in favor of PSN will tell you that on paper PSN has all the same features as Live, but anyone who's actually used the two services would disagree - the degree of convenience, speed and integration that Live offers has no equal among the other two consoles. On Live you can start a conversation with one or more players while ingame, leave the game while still maintaining the conversation, check email and even boot a new disc to invite your friends to play...something that neither of the other services will be able to do without a significant hardware upgrade.
It is true that PSN does have games that echo the PC model of using dedicated servers to host the game, but as of now there are only a couple of games that use that model (the ones that allow more than 32 players) and for the foreseeable future most vendors will be offering P2P online play...offering dedicated servers for PC games is one thing, but to support that model with the millions of console gamers connecting at all hours of the day - most companies would sooner save themselves that expense.
View