Following connection problems to the Xbox Live service over the holiday period, it is now reported that Microsoft will offer compensation to Xbox Live users for the interruptions in service.

It is apparent that there were problems concerning the Xbox Live service over the festive period. Although this is probably the best time for users to play, this left many frustrated gamers out there who were unable to play Live. Microsoft appears to be aware of the disappointment that these technical problems caused over the holidays and will offer free access to a Live arcade game as compensation.

Xbox Live team member Major Nelson has been keeping Live users updated in his official blog and has posted an announcement from Marc Whitten, General Manager of Xbox Live regarding the situation. In this message Marc Whitten notes the large numbers of new Xbox Live members and states that "as a result of this massive increase in usage we know that some of you experienced intermittent Xbox LIVE issues over the holiday break". He further maintains that "while the service was not completely offline at any given time, we are disappointed in our performance."

As for the compensation part, it appears that Microsoft wish to offer something to loyal customers. Whitten states that "at the same time we would like to offer a token of our appreciation to all of you in celebration of record success for the service. And as a thank you for your loyalty during this holiday period, we will be offering all of our Xbox LIVE members around the world access to a full Xbox LIVE Arcade game that will be available to download free of charge. In the coming weeks we will be sharing the specific details of this offer with you."