How MS Can Actually Justify $100 Xbox Live Service

DualShockers writes:

"Ok, so I know this may be a bit of a reach. And I'm sure there will be plenty of people who think this may sound crazy but here goes anyway. I recently read an article by Shawn Evans from Gamerlimit, and in his well written editorial, Shawn poses the argument of how "$100 Xbox Live would end the console war." Now before you get all "screw you MS, we're writing a petition" on me, this isn't something that has been officially announced by anyone even remotely related to Microsoft or it affiliates. No this "prediction" was made by none other than the "swami" of videos games himself. You know, the non-gaming-yet-somehow-knows-everything, Wedbush Morgan Securities analyst who everyone loves to hate: Mr. Michael Pachter.

On this past week's GametrailersTV: Bonus Round, Pachter spoke about the Xbox Live service receiving an increase to $100 per year. At first I was blown away by the statement (a common occurrence for me whenever Pachter opens his mouth) but then I when I sat back and really thought about the situation it may not be as bad as one would originally think, under certain conditions of course. If done correctly I wouldn't mind paying $100 per year, but please allow me to elaborate..."

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BROOKLYN N-M-E4470d ago

I actually see how this does make sense in a lot of ways! Netflix doesn't want to stay on the 360, then they have something better!

pangitkqb4470d ago

and that Microsoft's instant 1080p service will be able to serve as a replacement option for Netflix. Even if that is the case, i'm ALREADY paying for Netflix and getting the service through multiple platforms, namely my PC, laptop, PS3, and eventually Wii. With that kind of availability in comparison to just a premium service on my 360, the Netflix is still a better deal. It gives me the freedom to move about the world and still watch my instant queue without buying a zune HD.

Although the idea is cool, its just not worth the 100% price increase and paying for yet another movie service over Netflix.

nbsmatambo4470d ago (Edited 4470d ago )

they would automatically lose, cuz what really does Live have over PSN??

cross game chat/invites?

dont think thats worth $100

Chubear4470d ago (Edited 4470d ago )

It seems some are thinking MS will scrap the $50 a year for the $100 but I was under the impression :P that they'll have the $100 as an "option".

They're going to likely keep the $50 subscription but they'll have a "Platinum" subscription added with more "robust" features and you can bet, they'll indeed gimp online gaming for Gold members in some sort of way for sure to help usher them into Platinum Membership.

Interesting times indeed. I wonder how all this will turn out.

darthv724470d ago

The "AOL" effect is happening now. If MS were to offer up free streaming of movies as part of their membership then maybe it would be justified like the article says. Right now you still have to pay to stream the movie from the zune marketplace. Sure I pay the fee to netflix to stream movies but I also get physical ones as well. 3 at a time as many times as I can get to in a month not to mention all the movies I can watch streaming on my PC/360.

Live is going the way of AOL. Great service with so much to offer but getting harder to justify the price. Especially with alternatives doing similar features for much less.

Although..this is just a conspiracy theory...if live were to fold under the pressure of psn then what would stop psn from becoming a paid service? Look at free internet service provider netzero and them eventually charging for internet access. Sony is all about making $$ as much as the next company. Free will get you so far till you cant handle the overhead.

Lifendz4470d ago

Live is not 100 bucks and I doubt it'll ever be that much. MS would essentially price themselves out of the market with that much a price. Even the most biased salesman/games journalist couldn't dance around 100 bucks being a ripoff. People are already questioning the value of Live at half that price.

Live is not going to be 100 bucks. Remember who is saying this. Michael Patcher. The same guy that said we'd have a Wii HD right now.

Lekumkee4470d ago (Edited 4470d ago )

Taken from the article: "They can even turn Xbox Live into a 3-tier system. Silver membership: for cheap assholes, Gold membership: for online gaming, and Platinum: for online gaming as well as all the movies you can watch!"

So I'm a cheap asshole cause I don't want to pay for an ad infested peer-to-peer connection service? I only paid for LIVE once, and that's when I bought the 360 at launch. Now it's more like a "fool me once shame on you, fool me twice shame on me" and I'm not getting tricked twice. Microsoft can charge $200/300/400 bucks for all I care. I'm not going to be one of the idiots who will subscribe to it.

EDIT: I also haven't heard one MS exec denying a price increase, so take that as you will.

sikbeta4470d ago

Simply, M$ don't justify nothing, only rise the price and done, but I think they're not stupid to do It knowing online service is free everywhere, we still talking about what Patcher said, like he is accurate or something -_-

edgeofblade4470d ago

If they must, what Microsoft REALLY needs to do to justify the cost, be that $50 or $100, is give the user back the same value in MSpoints or give them enough content to equal. With the rate that games come out on XBLA, if Microsoft chose one game a month to give free (but charge silvers) then the price would hurt much less.

Reibooi4470d ago

This is total fail. The way they write it up is that the Zune market place renting will replace netflix. That isn't going to happen for a few reasons. Netflix is about 9$ a month and you can watch as much as you want for that 9$.

Zune market place is on a pay per rental system so right off the bat it's far more expensive. IF MS was to make the service 100$ then offer all you can download or stream it would not work. MS would lose money. The movie studio's and TV studio's need to get a cut of the money and doing that for that quality is not gonna make any money. Not to mention the Hollywood studios would want more and more money.

In my opinion what MS does is BS. They take things that are free on the PC and make people pay to use them on XBL. In my opinion XBL isn't even worth the 50 bucks a year. The only features they have that PSN doesn't is cross game chat/invites which is simply a matter of time. On top of that a large amount of PS3 games are on dedicated servers and have little to no lag at all unlike pretty much every game on 360. Back in the day of the original Xbox live was a GREAT deal but times change and that's not so much the case anymore.

HolyOrangeCows4470d ago

Most people mostly use LIVE gold for the MP. And you can already get that free most everywhere else.

+ Show (7) more repliesLast reply 4470d ago
u got owned4470d ago

i would like to know why are we seen so many of this articles when this is a rumor started by Patcher. Gaming news are going down the drain.

La Chance4470d ago

Its so outlandish I dont see what all the fuss is about.

edgeofblade4470d ago

Now, even Pachter is fishing for hits by posting flamebait on N4G...

BROOKLYN N-M-E4470d ago

I have watched some pretty bad 80's tv shows with my Netflix account! lol

taz80804470d ago

there's nothing wrong with the golden girls!

Grevan4470d ago

I'll see it when I see it.

Chadness4470d ago

They may be able to justify it, but that doesn't mean I'm going to pay it, if it comes to that.