Well if you have broadband and some money i would recomend you get xbox live as your console gaming service! Xbox has been built to support this service from day one so its all in the box!
The main features of live are:
Gamertag - your unique ID that you kep with you forever on all games!
Friends List - You can have a friends list just like messenger and you can see what game they are playing if you can join them and you can send them invites to games!
Voice communicator - You can talk to people in every single xbox live game thier is - every game supports it so you can always talk to people whilst playing!
Downlaodable content - Due to the xbox's harddrive new game levels, patches cras, weapons, maps and much more can be added to each game with downloadable content for live games and some non live games - for example splinter cell - which has a new level available to downlaod from Live only!
Scoreboards - many games have scoreboards so you can see just how good you actually are in the world, for different game types, different maps, each week, each month and overall!
You get all of this for just 39.99 - which includes the headset 3 demos - moto gp 1, wacked and mechassault and a years subscription to the service!
Good isnt it - but there is more - there will be over 100 live games out by the end of this year in the UK alone! And this autumn xbox live is getting a makeover with many new features! All these new features can be seen here:
www.xbox.com/live
(oh and you forgot to but XBOX: infront of your topic!)