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According to Business Week, the massive problems started in the "Windows Live ID service" used to sign in customers. It's also used by XBox customers for online game accounts. More than 460 users Worldwide have accounts, or a population larger than America as a whole.
The problems have been fixed and Microsoft told users that they were sorry. XBOX live is now up and running again also and the ids are now working - I have checked lol.
find out more from Microsoft
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