I would like to make a quick comment on this XBL crap.
I was a network engineer for 10yrs, and worked with hosting companies for 15yrs. I suspect that Xbox Live might being getting a DoS attack (Denial of Service). I believe this because look at their post, why are they not saying what is happening? Why are they not going into depth with their legacy users or something? Plus MajorNelson's comments have been more than telling with a DoS attack. If you know anything about these, they occur with a flood of packets to a host network or IP address. This causes latency and in and out connections. Because 'Nelson has stated that it is "slowly getting better by the hour" indicates to me that the DoS is dying down. This would more than likely be the case because of the port forwarding that has to occur in order to have an Open NAT. Easy target for 'hackers' maliciously trying to attack someone.
Ok not a DoS attack? Alright, then why would a billion dollar company not invest in higher capacity networks in order to support the mass of new users over the holidays? Or the release of video streaming, downloads, new front ends?
This might raise more questions then answers, but I just wanted to throw that out there.
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