The bump in cost for a Gold membership on Xbox Live is just the tip of the iceberg, according to game industry seer Michael Pachter. Predicting a $100 plan as the next evolutionary step in subscription options soon to be available to Xbox Live consumers, he told IndustryGamers reports that while the initial extra $10 "translates to around $100 to 150 million per year in additional revenue for Microsoft," the company will "reinvest at least this much in developing other new applications, and will roll out a premium service with $100 to 200 million worth of enhancements. 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."
It makes sense: Xbox Live is easily one of the biggest draws of the console and consumers have already shown they're willing to pay a premium for it. But even if Microsoft were to offer a "Platinum" service, what could justify what is comparably such a heftier price tag?
"For all I know, the Platinum plan might include virtual goods credits for various Microsoft games," Pachter posits. "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." You know what? We may know a few people willing to pay for something like that.
[Thanks, Mark]
Reader Comments (135)
Posted: Sep 2nd 2010 9:37PM Ample Salty said
@BleachMan Oh BleachMan, at last you're becoming a crafty consumer!
Reply
Posted: Sep 2nd 2010 10:48PM The angry pro consumer gaming ga said
@Solace I'll get downvoted for this but seeing so many comments saying that they'll go back to PC gaming if this happens only shows how simple minded a portion of gamers are. Instead of saying they'll get a PS3 where all the essentials are free with TERRIFIC exclusives out now and announced, they'll just quit console gaming all together. The reality is YOU brought this on yourselves by paying for $15 map packs and titles that are only 3 hours long, paying for a service that should have been free to begin with, at least the multiplayer portion. All you've done is slowly cut your own throats by showing that they can raise prices and you'll still pay, so don't complain because the only on at fault is the person in the mirror.
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Posted: Sep 2nd 2010 10:52PM The angry pro consumer gaming ga said
@The angry pro consumer gaming ga By the way I have both a 360 and a PS3, but I decided even before the raise in price for Live I would not renew. Anyone that is old enough to know how MS operates should have known that eventually they would screw the customer over once again when they felt they had leverage.
Reply
Posted: Sep 2nd 2010 11:33PM Themoreyouknow said
@Solace
How do you make a profit? Take years old technology that have been available on PCs, restrict the functions that can be preformed, and charge people for it (like just the simple ability to be able to play a game online). Then slowly add in "advanced features" (like 8 person chat and the ability to use thumbdrives in your USB ports) and charge extra!
Reply
How do you make a profit? Take years old technology that have been available on PCs, restrict the functions that can be preformed, and charge people for it (like just the simple ability to be able to play a game online). Then slowly add in "advanced features" (like 8 person chat and the ability to use thumbdrives in your USB ports) and charge extra!
Posted: Sep 3rd 2010 12:28AM Victoryismine52 said
@The angry pro consumer gaming ga
I think you might like this enjoy.
http://my.stg.ign.com/blogs/Victoryismine52/2010/09/02/if-video-game-systems-were-women/
P.S. I'm really proud of the Joystiq community for upvoting you.
Reply
I think you might like this enjoy.
http://my.stg.ign.com/blogs/Victoryismine52/2010/09/02/if-video-game-systems-were-women/
P.S. I'm really proud of the Joystiq community for upvoting you.
Posted: Sep 3rd 2010 1:29AM ShadowXIII said
@Solace
Um...I could SWEAR that what this is:
http://www.escapistmagazine.com/news/view/101558-Microsoft-Unveils-Xbox-Live-Family-Membership-Plan
So..what exactly is he 'predicting' again?
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Um...I could SWEAR that what this is:
http://www.escapistmagazine.com/news/view/101558-Microsoft-Unveils-Xbox-Live-Family-Membership-Plan
So..what exactly is he 'predicting' again?
Posted: Sep 3rd 2010 2:15AM This Little Man Says His Name Is said
@ShadowXIII
Patcher is a tool who just pulls shit out of his ass and claims it as black magic.
Reply
Patcher is a tool who just pulls shit out of his ass and claims it as black magic.
Posted: Sep 3rd 2010 7:58AM Startingline13 ArmlessOctopus said
@Themoreyouknow
Haha sadly, this is true
Reply
Haha sadly, this is true
Posted: Sep 3rd 2010 2:45PM TheDarkWayne said
@The angry pro consumer gaming ga Map packs, DLC and 3 hour games are on PSN too. I understand your other points and they're all valid, but it's not like the PS3 is the a glorious utopia where everything is free
Reply
Posted: Sep 2nd 2010 9:35PM Paradox596 said
Sad. I love my 360 but I really can no longer justify paying more and more for online services that I use less and less.
I'll take my saved subscription money, buy a ps3 and game online for free.
Reply
I'll take my saved subscription money, buy a ps3 and game online for free.
Posted: Sep 2nd 2010 9:50PM 51O Andy said
@Paradox596 I dont care paying for xbox while owning a ps3 because I often switch between COD with friends on PS3 and halo, and gears on xbox but shit $100 this is nonsense....3min later bill gates comes to my door wearin a red speedo.....''THIS IS XBOX!!!!'' hahah
Reply
Posted: Sep 2nd 2010 10:08PM The Aquacharger said
@51O Andy
Fun note, Bill Gates has nothing to do with their Zune/ Xbox department. I don't remember who's incharge of it, but it's not Gates.
Reply
Fun note, Bill Gates has nothing to do with their Zune/ Xbox department. I don't remember who's incharge of it, but it's not Gates.
Posted: Sep 2nd 2010 11:49PM BananaBoat said
@Paradox596 - You'll have to save for quite a while to buy a PS3 using subscription money that would have been spent on XBL. There are fairly regular 30 dollar sales on the 12 month subscription cards. At those prices, we're talking ten years until you can afford a PS3. Even at the new regular price of 60 dollars, that is five years. This console generation will be over in five years, but I guess you could still enjoy your new PS3 even if everyone has moved onto the PS4.
Reply
Posted: Sep 3rd 2010 12:43AM R Planteer said
@BananaBoat
A better plan would be to save up for a PS4.
Of course, that means going 5-10 years without online console gaming with his current plan.
Reply
A better plan would be to save up for a PS4.
Of course, that means going 5-10 years without online console gaming with his current plan.
Posted: Sep 3rd 2010 2:18AM This Little Man Says His Name Is said
@51O Andy
Who says you have to buy the $100 option?
Reply
Who says you have to buy the $100 option?
Posted: Sep 3rd 2010 2:32PM TaintedKane said
@This Little Man Says His Name Is
I KNOW!!! People here are acting as if Microsoft is taking away the Gold Subscription and replacing it with the Platinum. There is still going to be an option to pay the cheaper of the two fees.
Also this reminds me of Playstation Plus. Everyone was flipping out over the price but guess what. Its optional. I honestly can't imagine what Xbox Live Platinum would give us in addition to Gold except for a free game or something which isn't that appealing to me.
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I KNOW!!! People here are acting as if Microsoft is taking away the Gold Subscription and replacing it with the Platinum. There is still going to be an option to pay the cheaper of the two fees.
Also this reminds me of Playstation Plus. Everyone was flipping out over the price but guess what. Its optional. I honestly can't imagine what Xbox Live Platinum would give us in addition to Gold except for a free game or something which isn't that appealing to me.
Posted: Sep 2nd 2010 10:50PM 2gamers said
@Haelie
Agreed.heres what I would make it worth it for me:
All virtual items and downloadable content: free
All Xbox Arcade and other downloadable games: free
Any content from third party developers (whether that be levels or MMO monthly fees): free
Only then would I consider paying.
Reply
Agreed.heres what I would make it worth it for me:
All virtual items and downloadable content: free
All Xbox Arcade and other downloadable games: free
Any content from third party developers (whether that be levels or MMO monthly fees): free
Only then would I consider paying.
Posted: Sep 3rd 2010 12:10AM daytripper said
@Haelie
No kidding, 2 million might leave. MS is trying to hard to milk LIVE.
Reply
No kidding, 2 million might leave. MS is trying to hard to milk LIVE.
Posted: Sep 8th 2010 3:16PM Duke said
@2gamers
Those would be the only incentives I could see to make me pay for it yearly at that rate. Sadly, there are a lot of gamers who would think it would make them look elite to have that membership though and would mindlessly join up. That would of course ruin it for the rest of us.
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Those would be the only incentives I could see to make me pay for it yearly at that rate. Sadly, there are a lot of gamers who would think it would make them look elite to have that membership though and would mindlessly join up. That would of course ruin it for the rest of us.
Posted: Sep 2nd 2010 9:36PM Mouthsmasher said
"...if Microsoft were to offer a "Platinum" service, what could justify what is comparably such a heftier price tag?" This is what I would want to know. It would have to be something pretty darn awesome to win an extra $40 from me.
Reply
Posted: Sep 2nd 2010 9:48PM The Aquacharger said
@Mouthsmasher
It'd be like Playstation+. Discount on games/DLC.
Reply
It'd be like Playstation+. Discount on games/DLC.
Posted: Sep 2nd 2010 10:10PM Ballistic H said
@Mouthsmasher
All that extra money would provide Don with an even bigger house:
http://kotaku.com/5548282/xbox-boss-has-a-very-excellent-house
Reply
All that extra money would provide Don with an even bigger house:
http://kotaku.com/5548282/xbox-boss-has-a-very-excellent-house
Posted: Sep 2nd 2010 10:24PM Ballistic H said
@Mouthsmasher
And to pay for those Xboxes they gave for free to the attendees of Microsoft E3 2010 conference.
Reply
And to pay for those Xboxes they gave for free to the attendees of Microsoft E3 2010 conference.
Posted: Sep 2nd 2010 9:37PM SnorlaxTheSerialKiller said
I have to say, this is one of the best predictions Pachter has ever made.
$90 seems more microsoft-ish, if you know what I mean.
Perhaps this Platinum plan could feature free games exclusively to that plan? I would hate it, but it's realistic.
Reply
$90 seems more microsoft-ish, if you know what I mean.
Perhaps this Platinum plan could feature free games exclusively to that plan? I would hate it, but it's realistic.
Posted: Sep 2nd 2010 9:42PM oJMan240o said
Awe hell nah! I ain't payin no hunded dolla jus ta play meh gamez.
Seriously though. If it gets that high I'll just sell my XBox and play more of my PS3. If it's $100 it better INCLUDE Netflix membership, a web browser with full net access, a free monthly XBLA game, and side order of Cajun Fries.
Reply
Seriously though. If it gets that high I'll just sell my XBox and play more of my PS3. If it's $100 it better INCLUDE Netflix membership, a web browser with full net access, a free monthly XBLA game, and side order of Cajun Fries.
Posted: Sep 2nd 2010 9:47PM Mouthsmasher said
@oJMan240o; If it gets that high anytime soon, they'll still provide the standard "Gold" option.
Reply
Posted: Sep 2nd 2010 9:51PM Nofriendo said
"f 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."
You don't say...
Theres a reason why a Big Mac doesn't cost a million dollars more than the current price (even-though there's profits to be had), its because people wont buy it.
Reply
You don't say...
Theres a reason why a Big Mac doesn't cost a million dollars more than the current price (even-though there's profits to be had), its because people wont buy it.
Posted: Sep 3rd 2010 10:20AM This Little Man Says His Name Is said
@Nofriendo
Tell that to the ever increasing price of the Big Mac since it came out.
Reply
Tell that to the ever increasing price of the Big Mac since it came out.
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