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October 20th, 2009, 09:18 GMT · By Florian Totu

Microsoft Could Raise the Xbox Live Gold Subscription Fee

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The videogame industry has its share of speculators and fortune tellers, like any profitable business where tips are in hot demand. One of them, who has managed to make his voice heard and be taken into consideration, is Michael Pachter. This time, the Wedbush Morgan analyst predicts that Microsoft will give up on PC gaming but also that
the subscription fee of the Xbox Live Gold will see an increase in the near future.

When asked by a fan what he made of the lack of games ported from the Xbox 360 to the PC the analyst replied that "It's a profit deal. Microsoft wants you to never play a game again on your PC and play everything on your 360." Pachter also added that "you give a PC gamer an incentive to buy a 360 if you put something that he really wants only on the 360." He didn't not cast empty words and he is ready to back his predictions with some deductive logic.

"You can't hook a guy into Xbox Live Gold if he's playing on PC. So, I mean, that's the other problem is you really wanna hook every gamer who has a 360, you want them to buy all their games on 360, play everything multiplayer, pay you 50 bucks a year so that in a couple years, it's 100 bucks a year. And that's going up - we all know that."

Michael Pachter made other predictions in the past and it's how well they turned out that makes his word carry some weight in the industry. This new statement doesn't seem far-fetched either and it's hard to find a flaw in his logic. It may be true that right now Microsoft is the only one that charges for their online services, but then again it's not like they haven't already tried to increase the price on their subscriptions. The Gold memberships went up with the addition of Netflix streaming and now with promises of Facebook integration, the price could spike again.

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READER COMMENTS:


Comment #1 by: Stan on 02 Dec 2009, 01:51 UTC reply to this comment

I personnaly am losing interest in the whole 'XBOX Experience' due to the fees. I enojyed the Netflix service and thought the Facebook add-on was cool; however I let my Gold membership lapse because I'm really not seeing a return on investment (ROI); let me explain. I have a Tivo HD, PS3 and computer, all of which have Netflix access included, as well as Facebook (PC). These are nifty add-ons; however I don't feel that I should have to pay for access to something I already have access to. If they want my business, they'll need to make it more enticing, like throw out a free movie rental every month, perhaps a couple hundred MS points to spend on the Marketplace. If they continue to raise thier fees I have a feeling that they will be feeling the pinch of dissatisfied customers or maybe no customers at all. Don't get me wrong, I believe in the free-market system whole-heartedly; if Microsoft can make money doing this, they can have at it; they just won't be making any money off of me. Consumers have the power to change the market, it seems that they have simply forgotten.

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