None of those costs are hidden and none of them are mandatory costs.
Xbox Live =$50/year = $250 for 5 years.
Unncessary to play the vast bulk of games. You can also get it for around 35/13 months by buying subscription cards. But if you want to play figures 15/month WoW subscription for 5 years = $900.
Already comes with the 360 unless you buy the crappy Arcade. But even still isn't necessary unless you play online which most games are single player anyway.
Batteries for controller $20 (play charge kit)
Or you can spend 6 dollars and get a set of rechargables.
Oh noes! Not 470 dollars!
Add the $200 for the arcade to get $670. And people say PC gaming is expensive.
If you want to play any games from the last couple of years you would have spent at least 670 if not more on your PC.
At least you online for free.
For some games. If you want to play any decent MMO you are going to pay way more in fees over the same 5 years than anyone would pay for a 360 pro and a 5 year subscription to Live. And they would have enough money left over to buy at least a dozen or more games in that same period and still come out ahead.
A decent graphics card is only $200, if a pc is relatively new it should run most games (maybe not at full settings but at 720p shouldn't be a problem).
Yeah but it's going to cost you around 600-800 dollars to build a system (assuming you do it yourself) that will be able to do that. So basically your whole argument seems moot.