The game is telling me that I need to connect to live but I am. I am able to use anything in live and download content. For some reason destiny is not letting me on.
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Interesting. Can you try power-cycling the Xbox by holding the power button until it powers completely off, then turning it back on? We have seen similar issues that are resolved by power-cycling. If that doesn't work, it might be worth logging in to Xbox.com and verifying that your Gold membership is up to date.