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Home #Xbox 360


Pachter expects price of Xbox Live to increase photo

Blarg. I already look at the cost of Xbox Live as a bill, just like my utilities or phone bill. And now I'm hearing one analyst say that he expects it to increase? What next? Interest rate hike?

Maybe I'm throwing it out of proportion. But a price hike is in the cards, he says. In the most recent episode of Game Trailers' Bonus Round, Wedbush Morgan analyst Michael Pachter said that "we all know" that the price of Live is going to increase to help MS drive profits.

"You really want to 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 a 100 bucks a year," Pachter said on the show.

"And that's going up, we all know that ... it's a profit deal."

Well, sh*t. I didn't know that. Did you guys know that?

[via CVG]


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109 comments | showing # 1 to 50
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Konrad9's Avatar - Comment posted on 10/19/2009 09:42
Konrad9
And the subscriber count will fall... I had Live for 5 straight years before I stopped. I just don't play it online enough to make it worth.
Zulu's Avatar - Comment posted on 10/19/2009 09:43
Zulu
I wish I could get payed to jump to conclusions.
Monodi's Avatar - Comment posted on 10/19/2009 09:45
Monodi
Damn it Microsoft you are the freaking strongest computer company in the world, its not hard to make it free if Sony can.
ScottyG's Avatar - Comment posted on 10/19/2009 09:49
ScottyG
Seems Pachter is getting more and more alarmist with his predictions. I really wish he'd stop doing that.

tbh this doesn't surprise me, but I was hoping it wouldn't happen and still hope it won't. :\
SniperXan's Avatar - Comment posted on 10/19/2009 09:52
SniperXan
If MS has any brains at all and would like to continue to dominate PSN they won't do this. They are already charging for something PS3 users are getting for free (you can all wine about the quality of one over the other amongst yourselves, thats not the point.) why would they up the price while PSN is still free? Makes no sense at all.
Murumasa123's Avatar - Comment posted on 10/19/2009 09:53
Murumasa123
Its just a prediction though looking at the economy and Microsoft id say its a near certainty it will increase but maybe not a couple years.
And any reaction to the subscriber count wont matter as there is no way they would lose half of their subscribers so they'll definitely make tons more.
BrainLazy's Avatar - Comment posted on 10/19/2009 09:54
BrainLazy
I disagree. I think slowly as Sony makes PSN more and more feature parity with Xbox Live, MS will be forced to make "multiplayer" apart of the Silver line. Netflix and all the other stuff will be gold service.
Antwhan's Avatar - Comment posted on 10/19/2009 09:54
Antwhan
there isnt an honest reason it costs this much already. but 100 bucks while every other online system has free online services... if it goes up idk what I'll end up doing.

maybe finally buy a ps3 instead.
covah's Avatar - Comment posted on 10/19/2009 09:56
covah
THE WII HD IS COMING! THE WII HD IS COMING! THE WII HD IS COMING!
Hati Fox's Avatar - Comment posted on 10/19/2009 09:57
Hati Fox
right now i pay $43 and get 13 months for it, if it goes to $100 M$ can kiss my ass and say goodbye to there loyal subscriber
Super Drybones's Avatar - Comment posted on 10/19/2009 10:02
Super Drybones
@ covah
And it will probably have free online.
Sonvar's Avatar - Comment posted on 10/19/2009 10:03
Sonvar
Wasn't aware of it and frankly wouldn't understand the reason to increase it. I can almost guarantee the price for Gold Membership is pure profit for MS.
Sexualchocolate's Avatar - Comment posted on 10/19/2009 10:03
Sexualchocolate
ehem, Live only "dominates" PSN in Amurka. Amurka is not the world. It's pretty even pegged these days across Europe and PS3 takes the piss out of the 360 in Asia.

I'm not surprised by this at all, it's the Amurkin way!

What does surprise me however, is how it's only really the Amurkins that support the 360 so hard, i mean with all the problems, failures and costs, most of the rest of the world has realised that you're better off buying a PS3, yet the Amurkins simply keep buying failbox's? i mean what's that all about? Are you guys still pissy about the whole WW2 thing, don't want to buy an amazing Jap product over a shitty Yank product?
Chronic Logic's Avatar - Comment posted on 10/19/2009 10:03
Chronic Logic
Patcher needs to stop throwing darts to make conclusions.
Neo Rena's Avatar - Comment posted on 10/19/2009 10:03
Neo Rena
All I know is that having both a 360 and a PS3, I buy every single multiplayer game for my PS3 right now.
As more and more people get both systems the only way I can see Microsoft being able to compete is either dropping multiplayer into Silver as somebody else suggested, getting more exclusive multiplayer games, or if Sony ever charges for PSN...
Enduro's Avatar - Comment posted on 10/19/2009 10:04
Enduro
Pachter has switched from being an obscure analyst to a guy who knows that he has the power to alter headlines with every sentence he speaks. Saying Microsoft might raise the price of Live at some undetermined point in the future is not really news. Of course they might. But it might be 2 years. Or 5 years. Point is, is Pachter has become little more than a troll. Honestly, he's probably pissed the Giants & Jets both lost and is making himself feel better by getting all the fanboys riled up by spouting this latest bit of "insight".
ElectroZack's Avatar - Comment posted on 10/19/2009 10:05
ElectroZack
I would rather play online with 360. But even at the current price I don't have the time to take full advantage for Live to justify the price. So I am content to settle for playing PS3 online to satisfy my multiplayer needs. Even if it is slightly inferior. Basically, there is one less game I can buy a year if I get Live for a year.
zombiekiller13's Avatar - Comment posted on 10/19/2009 10:10
zombiekiller13
Does anyone have a list of Pachter's predictions and what he's been right/wrong on? I keep seeing him make crazy claims, but never really pay attention to them after they've been buried on gaming sites.
JamnOnTheOne's Avatar - Comment posted on 10/19/2009 10:12
JamnOnTheOne
"Blarg. I already look at the cost of Xbox Live as a bill, just like my utilities or phone bill."

So overly dramatic. That $4.10 a month is really something that needs to go on a household budget.
matrixdude171's Avatar - Comment posted on 10/19/2009 10:12
matrixdude171
Looks like it's cheaper and cheaper to get a PS3 instead.
SniperXan's Avatar - Comment posted on 10/19/2009 10:13
SniperXan
@SC

Well, I'm Canadian and I certainly have never heard of this place called "Amurka". But yeah you are correct, XBL doesn't dominate everywhere but PSN certainly isn't ether which actually plays to my point even better... why would MS raise the price on something people can get from PSN for free? (again, debate the quality of one over the other till your blue in the face...but it's not the point) I doubt this will happen.
Ryt Mx's Avatar - Comment posted on 10/19/2009 10:13
Ryt Mx
Well, it's likely that Microsoft will first hook its Live Gold customers with service offerings they won't easily discard (netflix, FB, twitter, perhaps others) before raising the price. And as others have shown (Ebay, Apple) a higher price doesn't always mean lost customerbase. Quite the opposite, sometimes...
reindall's Avatar - Comment posted on 10/19/2009 10:13
reindall
I can't see how people are still buying 360s. A 360 120gb for 300 USD (most probably defective), with additional 50 USD every year. Or a PS3 slim 120gb dor 300 USD, with a Blu-Ray player.

So, what do you choose Mr Gamer - do you want to pay 50 USD every year, or do you want a free Blu-Ray player, hm?
pascuz46's Avatar - Comment posted on 10/19/2009 10:16
pascuz46
If it does go up than what is stopping the PS3 from charging then.
ZombiePlatypus's Avatar - Comment posted on 10/19/2009 10:26
ZombiePlatypus
I don't agree with him. Assuming PSN remains a free service I don't see Microsoft being able to get away with it, regardless of whether or not they want to.
Monkey News's Avatar - Comment posted on 10/19/2009 10:28
Monkey News
THIS IS HOW THE PS3 WILL RUUUUUUULLLLLLLEEEEE!!!!!!!

But seriously this is bullshit.
smoger's Avatar - Comment posted on 10/19/2009 10:30
smoger
im holding onto my Live sub basically for netflix, so if it goes up a cent, i'll just fallback to using Playon for it like i do with my original xbox in my bedroom. they should pay *me* to play online with those Live douchebags
XrayZwei's Avatar - Comment posted on 10/19/2009 10:31
XrayZwei
My prediction: Based on retailers discretion on subscription cards in stores, Microsoft will not raise the base price of Live. If Best Buy can charge $30 for year subs, or other retailers can offer Buy 1, Get 1 free on the 1 yr + 1 month cards MULTIPLE times during the year, there is no indication that Microsoft will raise the base subscription. This is a current situation.

The prediction should be, does Microsoft feel like they will add more value in the future beyond Netflix, Twitter, Last.fm, Facebook, etc. that will allow them to raise the price? My feeling is that new things will be added to the service that Microsoft will call Platinum level that they can charge more for (server browsers, set-up of dedicated servers, cloud storage, etc.). The price of service as we know it will not increase.
Trowble's Avatar - Comment posted on 10/19/2009 10:34
Trowble
If it goes up to $100, then can't me out.
TorpedoTed's Avatar - Comment posted on 10/19/2009 10:34
TorpedoTed
Yeah this is bull, there is no reason to price hike, if anything i predict they drop the price when the PS3 becomes more popular.
my last 13 months live was £24.99 from ebay :¬)
Jizl Tizl's Avatar - Comment posted on 10/19/2009 10:34
Jizl Tizl
Looks like its time to start saving for a PS3...
falinter's Avatar - Comment posted on 10/19/2009 10:42
falinter
Yeah I doubt they would price hike.
PS3 staying free will be a big reason for them to stay at the current price.
And if it does double in price it stands to reason that half the subscribers will stop paying so their profits will remain the same but with less subscribers.

Won't happen.
KwikPwn's Avatar - Comment posted on 10/19/2009 10:47
KwikPwn
Enough is enough with this guy already!!! This is nothing but speculation meant to rile people up. Gaming doesn't need shock-jocks like Glenn Beck or Rush Limbaugh.
Molo's Avatar - Comment posted on 10/19/2009 10:47
Molo
After looking at WoW and MMOs in general, I wouldn't be surprised if they started charging a monthly subscription fee to use any online service (such as Xbox Live) since MMOs do so well using that method.
Shadowiii's Avatar - Comment posted on 10/19/2009 11:00
Shadowiii
@SC

So...what's with the America hate? America isn't that bad a place.
Oooh..you hate America because that's where the Xbox comes from and sells best. Gotcha. Guilty by association and all that. Whatever.

I think Pachter is off on this one; I have a feeling it'll drop to free with Natel's release. Optimistic? Yeah, but it would make sense.
Daynger777's Avatar - Comment posted on 10/19/2009 11:01
Daynger777
How about they focus on creating consoles and controllers that have a longer lifespan? Quit cashing in on defective products, fix it and then talk to me about hiking the price...
manasteel88's Avatar - Comment posted on 10/19/2009 11:02
manasteel88
I'm pretty sure this will happen. I don't believe the entry cost of a gold membership will change. $50 a year has done MS well. I think the price hike will be distributed through multiple channels. Price hike's in new Arcade games or DLC seems more rational. Keeping the Games on Demand high so that isolated regions that can't get these games have to shill out more. Pushes for bigger games on the hard drives so that gamers will have to buy bigger hard drives. MS is trying to get money in every little way possible without alienating customers.

The only thing really limiting MS right now with an average consumer is the Moon Bucks. It was a nice try to get people to think they are spending $8 when they are spending $10, but its not working with having to buy it in bulk. I have had 900 points on my hard drive for half a year and instead of buying games I am weighing out what I can and should buy so I don't have to buy another card. Expanding to Amazon helped this, but it should be removed completely for actual real dollars.

also, people need to get off Pachter's back. He's an industry analyst and so its his job to make guesses (whether right or wrong) on the state of the industry. Its not like he's Aaron Greenberg standing up there saying XBL will get an increase. He stimulates discussion in this industry and that's a good thing.
Mr Andy Dixon's Avatar - Comment posted on 10/19/2009 11:04
Mr Andy Dixon
@reindall

You'll never hear
me deny the fact that the PS3 is a better piece of hardware (sans rasterizees, of course), but I personally like the exclusives better on the 360 (notice how I said "I like"? That means it's an opinion), and for me, those exclusives (and especially Netflix) are worth $4 a month.

Wow, that was a long sentence.
Bob Muir's Avatar - Comment posted on 10/19/2009 11:06
Bob Muir
If they did increase it to $100 a year, I would not pay. Simple as that.
ninjikiran's Avatar - Comment posted on 10/19/2009 11:11
ninjikiran
The PS3 imo is a better bang for your buck deal. This is not taking into account games but you seem to get the most out of your money grabbing a PS3 fat. The PS3 slim seems a little gimped though.
Krahsh's Avatar - Comment posted on 10/19/2009 11:15
Krahsh
knew? no. Expected? hahahahahaha, but of course.
Electrium's Avatar - Comment posted on 10/19/2009 11:17
Electrium
Come on guys, do you honestly believe this? It's a prediction coming from the same guy who said this crap.

Microsoft knows they're the only company charging for internet on their console. They're smart enough to rip money out of wherever they can, and smart enough to know that they'd be digging their own grave by raising the price of Live. It won't happen, I can almost guarantee it.

Also, Sexual Chocolate: "Amurka" is the most annoying word I've ever seen. I wish you'd stop saying that, if anything. Microsoft does some really low things but to generalize an entire country for one company is the most bigoted thing I've ever seen you do. And you've done some pretty bigoted things on this site.
RenegadePanda's Avatar - Comment posted on 10/19/2009 11:26
RenegadePanda
Seriously? They aren't going to increase the price, shut up. Microsoft doesn't alienate their fanbase like Sony does. These 'analysts' need to stop thinking they can predict the future. Especially considering they're almost never right.
CtMythic's Avatar - Comment posted on 10/19/2009 11:30
CtMythic
Good fucking luck with that.
Sexualchocolate's Avatar - Comment posted on 10/19/2009 11:32
Sexualchocolate
My hatred for Amurka is nothing to with games consoles, it's more about the general stupidity and closed mindedness. Live dominates in Amurka, so you consider it a global domination!

I have the same feelings for people in London, it's like the world revolves around your little part of it.

Only yanks are stupid enough to keep buying 360's at such a rate! But that just happens to fit in with my general opinion of your nationality as a whole.

Brits are generally hooligan scumbags.

Yanks are generally fat retards.

It.s a common generalization.
Tarvu's Avatar - Comment posted on 10/19/2009 11:34
Tarvu
I wouldn't mind a pay as you play option, because I certainly don't even play online every other day.

See? A pay to play option. If any dumbfag can think of that in an instant then why the fuck are the people behind games consoles so fucking stupid?

When are generation is in control, it won't be about the money!
hawtpokkitz's Avatar - Comment posted on 10/19/2009 11:41
hawtpokkitz
If this happens I'm selling my 360 and sticking with PC gaming.
Drunken Haze's Avatar - Comment posted on 10/19/2009 11:46
Drunken Haze
I got an xbox 360 because at the time it was cheaper, had good games and my friends all had one.

Now I want more storage and would have to pay silly money for a better hard drive, the exclusives are few and far between and the hardware is probably going to break down again, and now it is out of warranty.

This would be the straw that broke the cammels back. Xbox live isnt worth anything; its paying to host games over the internet yourself. I accept the current price. If XBL still costs money by next generation than I wont be buying the next xbox, guarenteed.
Markusdragon's Avatar - Comment posted on 10/19/2009 11:47
Markusdragon
It's not good enough value at the moment as it is.
redobsidion's Avatar - Comment posted on 10/19/2009 11:49
redobsidion
i am the only one who thinks that 50$ a year is a very small amount to pay for 365 days of being a part of an awsome online gaming community? i mean really look at people who play World of warcraft anf how much they have to pay per month for ONE game! really, you can harp on Microsoft all you want for wanting to make a profit for offering something that has changed the gaming landscape as for as console are concerned forever. Really though even when you think about it, it wouldnt surprise me if off of each person only a small amount of that 50 dollars is even profit, the rest must go to maintaining the LIVE standard. and you know something else? i really think it's says something negative about the fact we all want so much for free.

its like you've got 10 friends and football but no pitch to play on.but the guy down the street got a banging field for you to toss the ball around. what you think he's gonna let you use it just out of the kindness of his heart? NO. now think about it with the idea that you and your friends wanna play there everyday.
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