By just having a TV tuner in your household you need to pay the license. Regardless of whether you use it or not. So unless you run an Xbox through an HDMI monitor and don't own a single TV then yes, the license fee dwarfs the cost of the tuner.
WRONG!
http://www.tvlicensing.co.uk/c...
From the above link:
The law states that you need to be covered by a TV Licence if you watch or record television programmes, on any device, as they're being shown on TV. This includes TVs, computers, mobile phones, games consoles, digital boxes and Blu-ray/DVD/VHS recorders.
You don't need a licence if you don't use any of these devices to watch or record television programmes as they're being shown on TV - for example, if you use your TV only to watch DVDs or play video games, or you only watch ‘catch up’ services like BBC iPlayer or 4oD.
In other words, even if you have a tuner, as long as it is not used, you DO NOT need a TV license to cover it. Should you, however, watch any content online at the same time as it is being broadcast, you DO need a license, even if you do not own a single piece of kit with a tuner in it.
It should be noted that when you buy any equipment with a tuner in it (TV / STB / PCTV device / whatever) the retailer will normally take your name and address (I believe this is by law) and this information is communicated to the TV Licensing bureau. If, when they receive this notification, they do not have on record any current valid TV license for that property, they will send out a letter asking you to either provide evidence that you have a license, buy one, or make a declaration that neither you, nor anyone in the property, watch or record TV as it is being broadcast, regardless of whether it is via the equipment you bought or some other method (e.g. online). As we keep our license up-to-date (My wife's daughter lives with us. It would seem that not having the capability to watch the latest reality-TV/whatever-other-crap-is-on is almost considered cruelty by many these days!), I have no idea what happens if you fail to respond to such a letter (I only received one of these letters because we bought a new TV the day we moved, and my change of address notification and their letter crossed in the mail).