14 DAY TRIAL // One industry analyst stated his belief that the price increase for Xbox Live Gold that Microsoft has announced this week is a way of increasing the revenue derived from it in order to get the investment needed to then launch a new service, Platinum level, that will contain new features, possibly including exclusive content and early access to some betas and demos.
Michael Pachter, who is an analyst working for Wedbush Morgan, has correctly predicted that Microsoft would increase the price tag for Xbox Live in the main markets of the United States, the United Kingdom, Canada and mexico.
Now the analyst told Industry Gamers that, “The extra $10 translates to around $100 – 150 million per year in additional revenue for Microsoft. I think that they will reinvest at least this much in developing other new applications, and will roll out a premium service with $100 – 200 million worth of enhancements.”
Pachter believes that the Platinum level Xbox Live service could come complete with Internet powered television, iTunes management and virtual credits and that the company will introduce new elements gradually as more users switch to it.
He added, “For all I know, the Platinum plan might include virtual goods credits for various Microsoft games. If members could get specialized Halo armor or weapons worth the extra $40, they might be more willing to sign up, and it doesn’t really cost Microsoft anything to offer things like that.”
The new prices for Xbox Live will be introduces on November 1 and Microsoft says that all those who renew their subscription or join up before that date will pay the same price.
Recently Sony has unveiled a new PlayStation Plus service, which is also subscription powered, allowing gamers to get early access to content like beta stages and demo versions while also offering them free issues of the Qore magazine.