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You were just lucky if you played xbox on hotspot because you usually always have to be connected to direct internet to play on xbox. Maybe you were connected and didn't know it. I've tried it on hotspot, it never works, it always says need internet connection.
In order to play online via XBOX Live, you'll need to purchase a time card (1month, 3months, 12months, etc) to play online. So yes you'll need an xbox live card if your looking to play any games online.
Are you connecting to Xbox live with a wireless connection or a wired one? There's not much to change if your going through a wired connection other than paying for a faster connection through your Internet Service Provider. If you're going through wireless, first try and change your router settings to NAT Open. Here's a guide on how to do it. It's recommended by Microsoft to have an open NAT instead of a mixed one. I know that when I have my xbox set this way, I connect faster to games in MW2. There's other things you can do with your router and xbox to try and get the best signal. But some are nitty gritty and hard to understand if you're not big on technical stuff. Good luck with this and trying to prestige!
Hey Lil Man23, There are two things that you'll need in order to connect your Xbox 360 to the internet wirelessly: a wireless router and a wireless network adaptor. While both of these may often be obtained through an internet service provider (ISP), you can generally purchase both hardware devices from a local retail store. In order to connect to the internet, your Xbox 360 will need to be set up in what is referred to as "infrastructure mode." This essentially means that your Xbox 360 will be set to connect to a single access point (the wireless router) in order to access the internet. If you're not quite sure how to do this, you should be able to find step-by-step instructions on how to do so in your owner's manual, or by using Microsoft's Xbox 360 Connectivity Wizard: http://www.xbox.com/en-US/support/connecttolive/xbox360/connectionmethods/webconnectivitywizard.htm If you're still not quite sure how to proceed, I would strongly suggest contacting your ISP for further assistance. Many ISP's are able to provide home networking services for their subscribers, but remember that there may be a charge for any in-home services provided by your ISP or any third-party company. Hope this helps you out. Sincerely, Aaron Go Ahead. Use Us.