First of all not all countries especially in Europe use credit cards like Visa or Mastercard, but bank account cards. I know tens of people with an xbox but no credit card, so MS is screwed trying to get their money.
Secondly the console market follows the rules of free trade unlike the operating system market that MS is so used to, so the competitor can outdo whatever youre offering, which means I wont HAVE TO pay MS a dime. That's the whole point here, that MS cannot ask for our money for a service that the competition will offer for free.
And even though the stock holders are the very incarnation of evil itself and expect gazillions of profit from every MS venture, as the richest company on earth, MS should bend over where its needed to secure a leading marketplace.
I would gladly pay 100USD more for the X360 if it meant full live service for free for the lifespan of the system, but I will not pay 100USD as a tax from my credit card to the company that already got my money when I got the game.
So if MS doesnt understand this, I have no problem going out to the shop and dish out whatever EA wants for Battlefield2 and play it for FREE every frigging day for the next year on my PC that cost me 2000 USD to upgrade a couple months ago, but I will not pay MS for a monthly fee even if the X360 costs 150USD.
That's the logic, and I'm sure I'm not alone.