SCB ,

Xbox live was absolutely a paid service

At E3 2002 Microsoft unveiled its plans to establish an online gaming service for the Xbox called Xbox Live. The membership fee was set at $49.99 a year, which is what it still costs today. Microsoft was adamant about getting users online quickly and easily

Dreamcast doesn’t really count as it was more of just a modem, and PS2 initially had no online capabilities. I still get wistful over what Dreamcast could have been.

Nevertheless, due to lack of widespread broadband adoption at the time, the Dreamcast shipped with only a dial-up modem while a later-released broadband adapter was neither widely supported nor widely available. Downloadable content was available, though limited in size due to the narrowband connection and the size limitations of a memory card.[23] The PlayStation 2 did not initially ship with built-in networking capabilities

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