Guide to Xbox LIVE Silver and Gold Membership Levels

The two membership levels available for Xbox Live subscribers (Gold and Silver) allow Xbox 360 users to access different items and features at different price levels. Everything (well, almost everything) you needed to know about the differences between the two subscription levels and which one is most suitable for you, can be found below:

Basic differences between Silver Membership and Gold Membership:

Xbox Live Silver Membership (free)

Steps
- Create your gamer profile - You get a unique ID to identify yourself on the Xbox Live network.

- Create and maintain a friends list - You can chat with Xbox Live friends just like any Instant messaging program.

- Access To Xbox Live Marketplace - You're able to download game demos, skins to customize the look of Xbox live, game content, and arcade mini-games. Some downloads will be free (demos, trailers) and others will be premium (arcade games).

Note - Silver level requires Xbox 360 storage device and broadband connection. Xbox Live Marketplace downloads and MMO games may require an additional fee.

Xbox Live Gold Membership (as low as $50/year)

- All the Silver level benefits PLUS:

- Online gameplay - You can only play games on Xbox Live if you have a Gold membership.

- Exclusive Xbox Live Marketplace Content - A few extra downloadable perks for being a gold member.

Note - In order to play your Xbox 360 games online, you'll have to purchase a Gold membership.

Silver XBLA subscribers can download content, including dashboard themes, gamer pictures, game trailers/demos, movies, game content such as new maps, weapons, levels, characters, challenges, expansions, arcade games and demos; connect with friends/players via voice chat, video chat, instant messenger and text message. However, a Gold membership will also allow gamers to go online with or against other Gold subscribers.

More details about the different memberships can be found right here

Thanks Omar from the Xbox 360 forums for the useful information.

Note - Softpedia doesn't encourage the use of incompatible hardware with the Xbox 360 console from Microsoft, or any software or parts that the company hasn't confirmed as suitable for use with the respective console.