We first noticed issues with Xbox LIVE when trying to sign into our own account and finding that we couldn't access cloud saved games. The issue was confirmed on the Xbox.com support page with an update at 7:36 p.m. EST saying users "may experience difficulties...accessing saved games and data in cloud storage.
The Xbox LIVE Marketplace has a similar message posted at 7:55 p.m. EST describing difficulties with "Redeeming downloadable items with Microsoft Points, buying additional Microsoft Points, or viewing your points balance."
When these errors occurred the weekend of Friday, Dec. 28, the Xbox LIVE Marketplace issue was fixed quickly while the cloud saved games issue persisted through the weekend into Monday, Dec. 31. Microsoft ultimately gave a free month of Xbox LIVE Gold to those that were affected by the cloud saved games downtime.
We'll keep you updated on the latest status of Xbox LIVE.
Update 1: Cloud saved games are back up. The Marketplace is still experiencing issues however.
Update 2: The Xbox LIVE Marketplace is up and running fully again.