Xbox Live Pricing To Go Up To $60 Per Year
donniebaseball23 writes "Microsoft has raised the annual price of Xbox Live Gold to $60, which is a price hike of $10. The new price goes into effect on November 1, but gamers can lock in the current Xbox Live price by renewing now. EEDAR analyst Jesse Divnich is not surprised by the move, nor does he think it will really have much impact on the Xbox momentum."
Well, with the price of gold these days...
For those of you interested you can lock in your yearly rate at $40 a year (a $10 discount on the current price and $20 on the increased price) by going to this link:
http://www.xbox.com/en-US/live/pricelock/default.htm
This is probably the least outrageous thing I've read on slashdot in a while.
Perhaps the timing of this isn't a coincidence, given that Sony recently just launched their own pay-to-play subscription service, PSN Plus? They can claim that this is just the going rate, nowadays...
All those extra features with no ongoing costs, and it's a real pity computer services aren't getting cheaper... No, wait...
Sony does not charge to play on PSN. PSN+ gives you access to content, everyone can play.
... except that everyone who owns an XBox is a potential customer for XBox live.
XBox sales don't need to increase or even maintain for the installed base of the system to be increasing.
In a sense your physics is right but your math, or at least your applied math, is bad.
Live is a portal that provides the following:
- Targeted Advertising, which makes Microsoft money
- Media purchasing avenue (Games, Videos, Add-ons, etc), which makes Microsoft money
- Multiplayer functionality around games which make Microsoft Money
- Subscription Fee, which makes Microsoft money
Only cost that has no/little return is from people who play multilayer constantly and somehow avoids seeing any of the advertisements.
This is really just a profit grab. I can't really blame them since they don't have to compete with anyone for their existing install base, but it does irk me.
There are only so many people that want game consoles. The idea that their sales will go up and up forever is silly. Never happened in the past. They sell a lot when they come out, maybe even at an increasing rate as they drop in price and become popular, however they then decline as they age and most people who want one own one.
Also the real money in consoles is not made on the hardware, it is on the software. The hardware is sold for a fairly minimal profit at best, and sometimes sold for a loss (the 360 was sold at a loss when it launched). The money is made in the games and services. You have to pay a per copy sold licensing fee to release a game on a console. So you make real money in selling lots of games people want, and on having services (like Xbox live) they pay for.
Of course you do need console owners for that, so console sales aren't irrelevant, but if you sell tens of millions of consoles and your sales ramp off, that's fine, so long as people buy stuff for them.
Sony's not putting Netflix behind some bizarre paywall either.
Non impediti ratione cogitationus.
The final decision that tipped me toward the PS3 and away from the Xbox360 was the fact that playing online games on the PS3 is free. I hadn't even considered the fact that Microsoft would eventually increase the fee for their service.
I hate to be the one to defend Microsoft here. $60 may seem like a big number, but do the math: $60 per year is $5 a month. That cost is nothing compared to what you're already paying for Internet or cable TV service.
PSN Plus is a superset of PSN, mainly related to the PSN online store. With Plus, they offer beta access to some games, store discounts, free copies of older PSN titles as well as other goodies. The core networking of PSN is untouched and remains free.
Ask Microsoft how they can do it. That's exactly what they do. You have to be a gold subscriber in order to use the Netflix app/dashboard/whatever you call it on 360.
It was free for a bit, I had let my Gold membership expire, which gave me a Silver, and Netflix worked for about 2 weeks before they required the Gold memberships. I think this is in poor taste. If I bought the console, pay for a Netflix subscription, and pay to have Internet, why does Microsoft need money for this transaction as well?
"20% inflation" implies that they raise the cost like this every year. They don't. They raised the price from its 2002 point.
Inflation figures according to http://data.bls.gov/cgi-bin/cpicalc.pl
$50 in 2002 = $60.59 in 2010.
Also, economies of scale don't necessarily apply. For example, moderation of the player base requires a number if people in direct proportion to the player base, and maybe even a little worse - the more players are, not only the more problem people you have but the more people each of them can piss off. That means a geometrically increasing number of complaints as the player base increases.
Not that I'm not in support of this change; I have a Silver subscription on an Xbox 360 that I got for free, and no intention of purchasing Gold any time soon, so it doesn't really affect me either way. Your post is at best misleading, however.
There's no place I could be, since I've found Serenity...
PLAYSTATION 3 and Wii are good if you only care about major-label games. Most of the indie games that aren't on Apple or HTC handhelds are on Microsoft platforms: the Windows PC and to a lesser extent the Xbox 360. One thing Windows and Xbox 360 have going for them is the diversity that only comes from open development, in the same way that iPhone beat out BREW phones.