Downloads are sold they are not free and the Playstation Downloads that are free from the Playstation Plus are not free they require membership in Playstation Plus and expire if your Playstation Plus membership expires.
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Free downloads are not even playable on a PS3 as the downloads must come exclusively from the Playstation Store
Playstation 3 is much better than the old Xbox and many consider better than the Xbox 360 because it can work with the Portable PSP and PS Vita when you are not at Home. It has a Blu ray player and and just as good of game selection except Playstation Move has more games than Kinect. Playstation Plus with the free games and discounts on some other downloads and automatic updates to games and console is better than Live Gold for the same yearly cost. If you want free internet PlayStation Network has online gaming Playstation Home and you use the Playstation Store while Live Silver only allows you to use the Playstation Market
Yes you can play PSN (playstation network) for free.
No the PlayStation 3 comes with Free PlayStation Network. Live is for the Xbox 360 and is not free.
Yes the internet access is free if you have the internet connection already in your house . Besides the cost of the internet if you don't already have it you may also need to purchase a router to allow another internet connection if you don't have WiFi. What is really free is the use of the PSN and anything else you use your PS3 while on the internet that does not have a charge for use. Following E3 2010, Sony introduced a top tier level of PlayStation Network known as PlayStation Plus. The service is available for $49.99 a year, and includes such features as early access to game betas and free downloads from the PlayStation Store. However, the current features of PlayStation Network, including online play, will remain free to all users.