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Microsoft says Xbox Live Gold isn't going away or changing right now
Looks like MS...I mean Xbox guys will still be paying for Live.
The update to 'Xbox online service' in the Microsoft Services Agreement refers to the underlying Xbox service that includes features like cross-saves and friend requests. This language update is intended to distinguish that underlying service, and the paid Xbox Live Gold subscription. There are no changes being made to the experience of the service or Xbox Live Gold.
Looks like MS...I mean Xbox guys will still be paying for Live.