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Microsoft explains Xbox Live Gold price increase

By

On November 2, 2010, 4:36 PM

Microsoft revealed plans in August to increase Xbox Live Gold's price from $50 to $60 a year. It goes without saying that many loyal subscribers were disappointed in that announcement, especially because Microsoft wasn't particularly forthcoming about its reasoning. With the price change now in effect, the company has shared its rationale in an interview with Gamasutra. In a nutshell, Microsoft raised Gold pricing to account for the extra services and exclusive content added since the Xbox 360's launch -- not to mention the substantial growth in users.


"In 2002 it was strictly multiplayer gaming. Now we get those Call of Duty map packs before anybody else does. We've got Gears and Halo, of course, as exclusives. We continue to get exclusives on the service as well. And we've gone from 400,000 members in our first year to 25 million," said Xbox Live marketing senior director Craig Davison. Davison said that Microsoft plans to continue adding services to Xbox Live, but that doesn't come cheap. "We also want to continue to innovate on all dimensions, whether it's social, entertainment, or gaming," he noted.

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User Comments: 89

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  1. So is the thinking, "We have more users, lets charge more money to shed users."

    Because I'm not going to renew out of protest. I don't want all the extra services. I'm only asking for multi-player. Anything above that is just fluff that I'm not using.

  2. So is the thinking, "We have more users, lets charge more money to shed users."

    Because I'm not going to renew out of protest. I don't want all the extra services. I'm only asking for multi-player. Anything above that is just fluff that I'm not using.

    I dont think you, or another 1,000 users like you would make a shred of difference.

    Its amount making money, which Microsoft have clearly done very well with the just published 16+ billion dollar profits. They have to protect it somehow I guess!

    I've never understood why people get so heated about the whole PC/console (and Mac/Windows) debates really. PC's are multi purpose, and good ones play games well.

    Consoles appeal to a different market of gamers, they're both good in their own ways.

    I'm not an xbox fan, but I do like to play our Wii, because as a family we can have fun playing it. I certainly wouldn't want my family using my PC. I view consoles as more family orientated personally, and the PC, well thats my thing and should be left alone by anyone but me!

  3. Why buy Blu-ray films if you can watch them in full HD on Xbox Live...

  4. This is ridiculous! Users paid 50$ for the continuous support and development - this is not a valid reason to raise price because of the new content available! Just take for example WoW players pay a certain amount of money every month (~15$) BECAUSE of the new features and content currently in development, otherwise their would not be any fees there...

    Also, gears and halo are exclusive yes... what's the point with XboxLive ? PS3 has also exclusivities like resistance and PSN isn't billable anyway....

    Microsoft really suck on this. Making every users to pay more and more where the competitors give all away for free.

  5. Good thing I got a 1 year for $36 on newegg back in May!

    But seriously, shouldn't more users make the price of membership go DOWN, not up? Besides, all this extra "content" in my book is just crap we don't need. I bought an Xbox to game and would use Netflix if my internet connection was faster. That's it. Sure I was pumped when they brought on streaming music and Facebook, but they were stripped down apps that you couldn't fun at the same time as a game. And the Facebook application also lacks chat. And don't get me started on Avatars...

    But I do in a way feel that I am getting ripped off still paying for stuff I don't want OR need. I don't know if it's enough to make me stop renewing my subscription though...

  6. Uhh, how many WoW expansions would you like me to name that cost money?

  7. The console-philes are forgetting that at the end of the day I can do a lot more with my PC than just play games. So when you factor in the comparable cost re: gaming, and then factor in all the other things you can do with your PC, its a no brainer. At the end of the day if I *just* wanted to game I would have invested in consoles.

  8. I have no problems paying $60 for the service. It's well worth it. The online multiplayer is second to none.

  9. online games, netflix, espn3, etc, etc, they have got america by the balls - they can charge how ever much they want without suffering from decrease in number of users. they can do this at will because there is no easy (cheap) alternatives. who is not happy about a $10 (~$0.80 / month) bump in price and is willing to give up all the xbox games and turn around and buy a PS3? they will probably buy PS3 but definitely not selling xbox because of this bump. MS's doing evil it's like drug lord raise price on drugs - no one is gonna complaint and boycott it (sry just finished watching The Wire)...

  10. I don't care about added value here and there, all I want is to play online with my buddies and I am not wiling to extend my Live membership at that price. Sorry Microsoft, no deal.

  11. edison5do said:

    PC gaming it is most expensive, remember when they pay 60 for a MemberShip, we pay 100$+ for better parts ( but seriusly with this console to pc porting fever spreading away, there will be no needs for upgrade until new consoles comes out)... but thatīs my though.

    WERD!!!!

  12. Ah! microsoft and their own sense and logic....... i mean really? that just sucks, the prices werent even that cheap before and if you get more poeple y the hell are u increasing prices???????

  13. Man glad I don't play xbox, or really online with a console at all.

    As for the other argument going on here (Console vs PC - $$$) it all depends on what you get into - there are just too many variables to say x is always more expensive than y

    Full blown Guitar Hero set is rather spending, but not everyone has one (I don't).

    Arguing game prices is hard to do also. Almost all my console games are used. But used PC games are hard to find, and then the CD key is already activated, and all hell brakes loose. But then again you can get PC games off Steam on sale a lot too. So I see a draw there.

    If we just argue game console plus input devices against tower plus input devices - I have about $300 into my PS3 plus controllers and $600 into my tower + input devices (keyboard, mouse, ps2 controller to usb adapter). And even if we through out the parts I didn't buy just for gaming (2 1TB WD black hdd's @ $80ea - no OS on them, just storage) It pulls it down to ~$440.

    Console seems like it lead the way there, but when I trough in the $1500 I plan to drop on a nice shinny HDTV next spring, kinda tips the scales the other way - even compared to the 2 new flat screens I'm getting for my computer.

    Now you can argue the PC is used for more than just gaming, but so is my TV and everyone keeps grouping the TV in with the console price to tip the scales in favor of the PC. And my PS3 does more than just play games. I stream media through it all the time, and its my blu-ray player.

    Hell if you through in the $15/mo I pay to play WoW makes the hole $60/yr thing for the Xbox seem pretty silly.

    so like I said at first - there are just too many variables to flat out say "x cost more than y". I honestly don't know which I have spent more money on - my computer or console gaming.

  14. Total B.S. Microsoft doesn't need the money and has the money to support all they claim nor did it ever need to be 50 dollars. It's greed. I already told myself I will never buy a Xbox again. I'm going back to Sony when the new models come out.

  15. They should have two different versions, one with all the crap the other just for gaming,then you pay for what you want.

  16. @Tgard

    My argument is flawed because for console gaming, you only need 1 console in your opinion? In that respect, if we're going to blatantly disregard available games in each market, then PC's could never buy any games at all, as there's thousands of free flash based games on the web, if you didn't have to buy games on the PC, that would dramatically push the pricing debate in their favor.

    And yes, the $850 includes the monitor, the number is taken directly from the buying guide on this website. And I'm aware that you can cut down prices on the consoles themselves, just as you could the PC. The prices I quoted are direct bundle prices from Walmart and come with additional equipment like Move, Kinect, etc. To my reasoning, if you're going to be honest about the pricing, you've got include the equipment needed for the games you'll be playing. Like I said in my original post, of course you can spend more for a PC, but if you're starting from scratch and are going to pick only 1 gaming market, then these are the realistic costs you'll be facing. Also, simply assuming that the cost of a TV shouldn't be included in the overall console pricing is disingenuous at best. Using that logic, you can assume everyone's already got a computer, so the price shouldn't be counted against it, right?

  17. hattrk10 said:

    I don't understand why anyone would pay $60 a year to use services that are free on the PS3...not to mention a decent blu-ray player. That seriously was a large reason why I went with a PS3 over a 360 when I was ready to purchase a console.

    Letme explain it to you in one word..........CONTENT! XBOX LIVE is on it's 11th Generation online services. They offer the BEST online content on XBOX gaming console....period!! I don't take ANY sides which is a better console. I own both the 360 & the PS3. When it comes to online/Multiplayer gaming, Xbox Live is a clear winner in this catagory. On PS3, the reason why you don't pay anything and it's FREE because theres no REAL content. Theres your answer. Happy gaming

  18. Guest said:

    Total B.S. Microsoft doesn't need the money and has the money to support all they claim nor did it ever need to be 50 dollars. It's greed. I already told myself I will never buy a Xbox again. I'm going back to Sony when the new models come out.

    Look @ the whole picture. There in this business to make money like other companies do. (Sony, Samsung,MS, Logitech, Apple..etc.

  19. spyx said:

    Ah! microsoft and their own sense and logic....... i mean really? that just sucks, the prices werent even that cheap before and if you get more poeple y the hell are u increasing prices???????

    The reason why they increasing it is because..they keep updating, adding fresh NEW content for ther customers. You dont see this on the PS3...HEheeheh. You NOT obligated to buy anything from them. If you don't like there services don't buy them ...period. Stop complaining and move on.

  20. Guest said:

    Why buy Blu-ray films if you can watch them in full HD on Xbox Live...

    100% agree..... Smart customer

  21. You guys need to stop complaining about the increase. Another $10 will NOT hurt your pockets! If you breakit down $50 divided by 12 months thats less than $5 dollars a month ( $4.16 to be exact) $60 /12 = $5

    So in 10yrs MS raised there price of the membership to a measly 0.84 cents. And you guys are complaing!!....You either a MS hater or you just f..... bored.

  22. TorturedChaos said:

    Man glad I don't play xbox, or really online with a console at all.

    As for the other argument going on here (Console vs PC - $$$) it all depends on what you get into - there are just too many variables to say x is always more expensive than y

    Full blown Guitar Hero set is rather spending, but not everyone has one (I don't).

    Arguing game prices is hard to do also. Almost all my console games are used. But used PC games are hard to find, and then the CD key is already activated, and all hell brakes loose. But then again you can get PC games off Steam on sale a lot too. So I see a draw there.

    If we just argue game console plus input devices against tower plus input devices - I have about $300 into my PS3 plus controllers and $600 into my tower + input devices (keyboard, mouse, ps2 controller to usb adapter). And even if we through out the parts I didn't buy just for gaming (2 1TB WD black hdd's @ $80ea - no OS on them, just storage) It pulls it down to ~$440.

    Console seems like it lead the way there, but when I trough in the $1500 I plan to drop on a nice shinny HDTV next spring, kinda tips the scales the other way - even compared to the 2 new flat screens I'm getting for my computer.

    Now you can argue the PC is used for more than just gaming, but so is my TV and everyone keeps grouping the TV in with the console price to tip the scales in favor of the PC. And my PS3 does more than just play games. I stream media through it all the time, and its my blu-ray player.

    Hell if you through in the $15/mo I pay to play WoW makes the hole $60/yr thing for the Xbox seem pretty silly.

    so like I said at first - there are just too many variables to flat out say "x cost more than y". I honestly don't know which I have spent more money on - my computer or console gaming.

    Your choice. Your preference. It should be the other way around, saying "Man glad I don't play PS3, or really online with a console at all." Stick to your $1000 + PC that only plays 2-3 decent games then it's time for you to upgrade....hehe

  23. cryptopsy said:

    This is ridiculous! Users paid 50$ for the continuous support and development - this is not a valid reason to raise price because of the new content available! Just take for example WoW players pay a certain amount of money every month (~15$) BECAUSE of the new features and content currently in development, otherwise their would not be any fees there...

    Also, gears and halo are exclusive yes... what's the point with XboxLive ? PS3 has also exclusivities like resistance and PSN isn't billable anyway....

    Microsoft really suck on this. Making every users to pay more and more where the competitors give all away for free.

    Letme explain it to you in one word..........CONTENT! XBOX LIVE is on it's 11th Generation online services. They offer the BEST online content on XBOX gaming console....period!! I don't take ANY sides which is a better console. I own both the 360 & the PS3. When it comes to online/Multiplayer gaming, Xbox Live is a clear winner in this catagory. On PS3, the reason why you don't pay anything and it's FREE because theres no REAL content except for few free PSP / PS3 wallpaper to decorate your system. Theres your answer. Happy gaming

  24. Did someone run out of Ritalin?

  25. hello ...

    as usual, this turns out to be another lame fanboy war over who's got the bigger ....aaarrrrgh!

    COME ON, i thought we were adults !!!

    1st we are talking about MS pushing the XBL subscription, i understand but don't agree with the reasons put forward, why!? ... well because i've tried both, XBL & PSN & all i can say is that i don't see anything a PSN (free) user would have to envy over an XBL 1, anyone saying so is either a fanboy or never tried the other service.

    OT:

    Playing MP on PC is free, just get a legal software & voila!

    I love Steam :P

    Gaming on any platform is expensive; I may buy a lot of games for less 10$ on steamy site & alike, i also pay 15$ for my fav MMO & will add 2 more someday.

    When i'll build my PC, it will cost @ least 800$ with all the components i want. I pre-ordered Diablo III & waiting to download @ least 10 games off steam that doesn't run on my actual old machine.

    I paid my console (PS3) 545$ 2 years ago & i can still build a decent PC (in MU) for a bit less than that, but then how will i play also God of War, Gran Turismo 5 or Demon's Souls !!? Oh & most of my games (35 to date) costs around 10 - 60$

    Would have buy an Xbox (mostly for games like Alan Wake) if it was reliable right at the beginning, now it's too late, i don't have enough time to play all the games i own on PC/PS3, who knows maybe someday.

    When i play, whether it be on PC or PS3, i spend hours & my electricity bills reflects it, without counting my fixed Internet bill & maybe some visit to the doctors for lack of sleep ....

    No people, PC isn't more expensive than console & vice versa, GAMING is !!! & I can afford it so won't whine about it with cheap arguments.

    BOT:

    I'm really sorry for Xbox owners, they never had it free & it is now more expensive (even if i don't feel it's too much for the service offered).

    But MS, Like SONY or any other PC game developers are 1st businesses that are here to make profit, as long as they can entertain us in the process....

    to this, sorry for long post..

    cheers!

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