Microsoft boss Aaron Greenberg says the community "largely transitioned off" onto Xbox 360, and now they can focus on a lot more stuff.
"A lot of our partners talked to us about cutting off Xbox Live support, you know, a long time ago, and it was really something that we didn't take lightly," product director Greenberg told Xbox World 360 magazine, reports CVG.
"We're at that point now where that community has largely transitioned off and onto the Xbox 360, and now, by discontinuing that support, we're able to add more features without necessarily having to support things like that friends list integration where you could see your friends on Xbox1 or Xbox 360."
"Having that new flexibility will allow us to bring more features to the Xbox Live Community on Xbox 360," he continued. The greatest loss felt from the original Xbox Live getting cut off was by long-time Halo 2 fans who can no longer play multiplayer.
"We have heard from folks that they want to be able to extend the Friends List. It's something we are looking at. We haven't announced anything but it is definitely something that we're aware of." Extended friends list - courtesy of Xbox's death.
Before the service was killed off, Halo 2 was 'updated' to show a load of personal messages from developer Bungie that thanked and teased Halo fans. Are you now without your Halo 2 multiplayer fix? Will you give Halo: Reach's online beta a go?