Xbox Live Likely to See $100 'Platinum' Service Next, says Pachter This week Microsoft officially announced a $10 increase to the annual Xbox Live Gold subscription. Most analysts were not too surprised by this, believe the added features over the last year justify the price hike, and that Microsoft's Xbox momentum should not be affected by the move. But where does Microsoft go from here? How much can they charge and what will they offer? In a special Pachter's Podium last year, Wedbush Morgan Securities' Michael Pachter correctly predicted the $10 increase and he said a $100 plan might very well be in the cards. Now that the price actually is being raised, we decided to check in again with Pachter to see what his thoughts were on Xbox Live pricing and the future of the popular online service. Regarding being correct about the increase, he began by joking, "Yeah, even a broken clock is right twice a day." As for Xbox Live's future, the great thing about the $10 increase is that it will enable Microsoft to reinvest in the service to then offer even more enhancements. "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 told IndustryGamers. "If they can get 2 million users to switch from the $60 plan to the $100 plan, they'll make an extra $80 million a year, and can keep investing to try to grow that business." He continued, "The Xbox 360 can work as a media center, and conceivably could do things like managing a music library. Although Apple and Microsoft aren't the best of friends, I could see Apple letting Xbox Live members manage their iTunes accounts through their 360s, and other such premium services. I'm not the guy to speculate as to what they will offer (for example, I didn't even know ESPN 3 existed before it was announced for the 360), but I'm sure that there are many talented and creative people at Microsoft working on such a plan right now. 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." We also asked Pachter about the possibility of the Xbox becoming more like a cable-box with IPTV or similar functionality, but the additional features will come more gradually, he believes. "As far as other media center applications, I think we'll see baby steps on IPTV before we see a full roll-out of a cable-like service. More channels like ESPN 3, perhaps they will offer HBO Go or something similar. There are a lot of emerging services like Hulu, Epix, perhaps a premium YouTube service. I think that the possibilities are limitless, although it's a bit early to speculate on what precisely they will offer," he said. Read more at IndustryGamers
Who in their right mind would pay $100 for any type of Xbox Live service? *thinks about how much MMO players spend a year* Oh...
It really does surprise me how tight some of the people here really are. 100USD is nothing. I bet most of you spend more than that on pointless shit in a few months. Anyway, it's only 10 USD more than it is now. Yakumo
I'll admit, I'm a tightwad so I'm reluctant to pay a high price for something unless I REALLY WANT IT or get a deal. However, I agree that many people spend their money on pointless crap too. Cut out the Starbucks, fast food, trendy clothes, and movies here and there and you'll magically save up $100 over time. I guarantee it, folks. IT'S NOT HARD.
We already knew about that. I was assuming they meant a different $100 plan altogether, one with new features.
What? Either you're mistaken or paying way too much for Live, because from live-codes.com or whatever you can get Live for a year for about $50. Of course, buying it directly from your console you get a ripoff price.
It all depends on what's offered. I didn't even realize it but I have the $9 Netflix plan and that's over $100 a year. If they offer tv services like Hulu and being able to watch sports broadcasts on ESPN, I don't see the need for cable. I know people that spend a small fortune on cable every month. We're not just paying to play games online anymore in Microsoft's eyes. Even though that's probably all most of us do on Xbox Live (outside of Netflix). All that stuff is cool and all but I kinda just wish they'd stick to gaming but whatever.
There is no new feature in my mind worth warranting a $100 price tag. If "Features" include those shitty Facebook and Twitter Gadgets, forced use of Zune videos to watch my own videos, and Last.FM, all things that work %100 better on a computer, then fuck it. Those features suck. They arent even full featured counterparts of the originals. They let you do jack shit, so stupid. I hate gimmicky shit and Im ready for them to release something useful on the Dashboard.
My god, that shit pisses me off. Downloaded a trailer for a game? Wait a few minutes for the Zune app to boot up to watch it!
Well, there are people (like me) who don't give a flying fuck about the other "features". I don't use NetFlix, FaceBook, Twitter, Last.fm, or ESPN3, so they are worthless to me. I only use Live for multiplayer with voice chat...that's it! How about a lower tier price for just that, multiplayer and chat? Hell, outside a few things lacking, I can do that on the PS3 for free.
yeah... but there are a couple honest people out there that actually purchase their media. if Microsoft somehow worked out a deal with Netflix/Hulu and had the $100 tier come with like a Zune pass to watch a certain number of movies a month and include the other services and their subscription fees it'd be totally worth $100. I'm pretty indifferent to the $100 plan until I see the new stuff they're going to the service. I'm more concerned with the $10 increase. It's already hard enough to convince friends to pay for Gold. And raising prices doesn't help at all.
Glad someone agrees. The fact that its forced is one thing, the fact it takes what always seems like too long to start up is another, but the quality of the program itself is so depressing. I shit you not, I was watching an episode of South Park that was on my HDD, and it had to Buffer 6 times throughout the show. What is it Buffering? & Why? The Zune itself is cool, but it should remain its own thing, just as the Xbox should remain its own as well. Sounds dream, too bad Microsoft will probably never do that as more than half of their subscribers would move to that plan.
