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The problem could have possibly been caused as a result of the spike in number of Xbox Live members.
Haha, I said "don't expect anything" which was backed up by Ren of Heavens posting the Xbox Live Terms of Use. Either way, it is nice if Microsoft do compensate their customers in some form.
Good that they're doing something to make up to their customers, just hope it's nothing really stupid. Can't be expecting anything really good tbh.
I barely played my 360 at all last week.
The point is, a lot of people were really pissed off by not even being able to sign in, let alone play the games online.