While the concept should not be ruled out in its entirety, I believe that the benefits should be heightened to provide a better value for the money.
The cost of a Gold Membership should be lowered to $25.00. The Platinum Membership to $50 and a Diamond Membership added for $100.00. Also consider offering a Lifetime Membership for $250-$500.00.
However, the missing element is that of the exclusivity of content, which correlates to the pricing tiers. I would investigate special discounts from some of the independent companies for the Platinum and Diamond members. This could be a yearly coupon, such as free shipping ore exclusive sales. I believe that when you charge as much as XBox Live, there should be some special benefit, aside from an avatar and a Tokyo tour. A tour by Cheapy is not to be scoffed at, but let's be real, how many people are going to travel to Tokyo?