I don’t know if you’ve noticed but for the past week Xbox Live hasn’t really been working. It cuts out and hangs up and generally causes a kerfuffle.
A spokesperson for Microsoft blamed all the outages on a large number new sign-ups over the Christmas period. In fact, December saw the most concurrent members ever on Xbox Live.
To say sorry, Microsoft is offering all Gold and Silver members a free Live Arcade game. Which is nice. It’ll probably help if they fixed the problems first, though. According to reports (us reading the Eurogamer comments) issues are still ongoing as of today.