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Microsoft has described games industry analyst Michael Pachter's claim that the annual Xbox LIVE Gold subscription fee will be raised to "100 bucks" as "flattering".

Last week the outspoken Wedbush Securities analyst said on Gametrailers' Bonus Round that "we all know" that the fee is "going up".

While discussing the current state of PC gaming, Pachter said: "You can't hook a guy into Xbox LIVE Gold if he's playing on a 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 of years, it's 100 bucks a year. And that's going up. We all know that. It's a profit deal."

When we caught up with Xbox LIVE Europe general manager Jerry Johnson to chat about the launch of Sky Player on Xbox 360 in the UK, we asked him whether there was any truth to Pachter's claim.

"It would be interesting to understand what his basis was for that," Johnson told VideoGamer.com. "It's interesting to have someone come out there and say, 'I think it's worth more than you're charging'. That's not something I'm used to!

"I can tell you it wasn't directed or tied to anything actually going on within our group. So I would say this was an analyst making a comment, as far as I can tell, on what he thought the quality of the value of the offering was. That's why I was asking you if he went into any more detail."

After we quoted Pachter to Johnson, he replied: "Yeah, I don't know if everybody knows that it's going up. I find it flattering that someone feels that the value of what we're delivering is worth more than what we're charging. That couldn't have been popular with other press. Unless he was trying to be sensationalistic to get a quote out there."

$100 equates, at the current exchange rate, to just over £60. If Pachter's prediction proves to be true, it would mean a hike of £20 on the current £40 annual Xbox LIVE Gold membership fee.

See what else Johnson had to say by heading over to the interview in full.

What do you think? Will Microsoft raise the price of an annual Xbox LIVE Gold membership subscription? Let us know in the comments section below.

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User Comments

CheekyLee's Avatar

CheekyLee

XBox Live is worth what it costs right now to the millions of subscribers. Raise it by even a small amount? Then lose subscribers. Double it? Then lose most of the subscribers.

I honestly can't for the life of me figure out why Sony have not put a subscription cost onto PSN yet. It's not like they would lose anybody, and the internet is full of people who think it is as good as the MS service. I'd love to hear how good droids think PSN is if it cost them even half of what Live does...
Posted 08:00 on 30 October 2009
nickclt's Avatar

nickclt@ pblive

I agree Dreamcast did get the ball rolling. I loved my Dreamcast it was an awesome system in which both MS and Sony got ideas from unfortunately Sega didn't have he funds and software support to keep up. My point is that David-Macphail saying that PSN and XBL are the same. They are the same in the fact they both offer online play but it ends there. XBL has more and better features as of right now than what Sony does not have and is worth the price to pay for it. I know they are improving it and are slowly getting to that point.

And I agree PSN has come a very long way with their XMB and features that they have added and still offering it for free. Which may cause MS to rethink their price point. I like both systems, but prefer online gaming on 360 because of the better online features it has.
Posted 06:43 on 30 October 2009
David-Macphail's Avatar

David-Macphail@ nickclt

Cross - game chat.....party chat.........Achievements......Gamerscor e....blah, blah, blah.

Those things are all brilliant but let's face it - they're nothing more than add - ons. The main focus of online gaming is online gaming. Nintendo and Sony offer it for free - Microsoft doesn't. That's the only difference.

Are you telling me that if Microsoft offered online gaming for free but without cross game chat you would pay $50 per year simply for the cross game chat??? That doesn't make any sense to me..........
Posted 11:39 on 29 October 2009
Hazell13's Avatar

Hazell13

I think they need to clean up live before they put it up.
I for one like online gaming but for the right price and at the momment the price is right for all the crap you have to put up with, kids shouting and spoiling games by dropping out.
And all th other things to many to mention but p you off.
Posted 11:16 on 29 October 2009

pblive

Sony tried to be different rather than directly copying Microsoft, I don't really understand your point nickclt, especially when you say 'oh Xbox has this and this that PS3 doesn't have' it sort of underlines the point. There are only the same simularities with Xbox as Xbox had with the online Dreamcast, so it was obviously the Dreamcast that started the online ball rolling based on that same logic.

Currently the Xbox does do things better online, especially with game invites and setting up friend matches, it also has the benefit (well, most of the time) of being a unified system where Microsoft have put their foot down and insisted every publisher tows the line and uses the same system where Sony have let publishers freely decide how to implement online and use their own servers, which can lead to issues when Sony want to update new features on the XMB.

The PS3 will be getting cross game chat in one of the next big updates and the XMB/PSN has improved immensely over the last year without being paid for by the customer, so if Microsoft put the price of a Gold subscription up then their going to be causing trouble as the PSN keeps improving for free.
Posted 10:16 on 29 October 2009
xboxlive's Avatar

xboxlive

If the price goes up i think sony will be seeing alot more members coming to ther PSN.
Posted 09:40 on 29 October 2009
nickclt's Avatar

nickclt@ David-Macphail

First off PSN is not the same as XBL .. XBL is a lot better and worth the $50 a yr for the service. Now if it goes up to $100, which I don't think it will then I will have to reconsider the cost, but for $50 a yr it's worth paying for party chat, cross game chat, and easy to access game invites. Thanks for trying to copy Sony it was a good try.

Everyone talks bad about XBL and paying for it, but just remember what PSN does now is what the original xbox did for their online gaming. And if there was no XBL there would be nothing for Sony to copy, as they know that the XBL service is better than what they have to offer. otherwise why would they bother trying to mimic it.
Posted 04:17 on 29 October 2009
Bloodstorm's Avatar

Bloodstorm

The only way i would pay that again is if MS got rid of all the racists, underage kids, the homophobes, the grievers, the people who cant sing, people who shout "LOL MY CO*K IS 10 INCHES! LOOK AT MY CAMERA!" but sadly they'd ban someone who says they're gay on there bio but not ban any of the people who i've mentioned who deserve it.

Clean up Xbox Live and i'll consider returning.
Posted 00:56 on 29 October 2009
David-Macphail's Avatar

David-Macphail

Pachter didn't say Xbox LIVE was worth more at all. Xbox LIVE isn't worth the price it's at right now when the PSN does exactly the same thing, plus more, for a total cost of £0.00 PA.

Pachter basically said Microsoft want to get gamers hooked on LIVE so they can jack the price up and screw their loyal fans even more. I feel sorry for anyone who pays good money for an Xbox LIVE Gold account - it can't feel good to know that Wii/PS3 owners are getting the ability to play online for free.
Posted 22:18 on 28 October 2009
rbevanx's Avatar

rbevanx

Well from the quotes on the story, he's not exactly saying no to the idea.
Posted 17:16 on 28 October 2009
Bloodstorm's Avatar

Bloodstorm

You shouldnt need to pay to play online.
Posted 16:13 on 28 October 2009
j_shifty's Avatar

j_shifty@ El-Dev

I doubt they will but I wouldn't be surprised if it did raise by that amount. Look at games on demand, they cut out the games shops, packaging, distribution etc yet still have them at a high price.
Posted 15:48 on 28 October 2009
El-Dev's Avatar

El-Dev

Pachter is outspoken now I see.
Posted 15:37 on 28 October 2009
mikejosh1978's Avatar

mikejosh1978

I put in another thread / article that £1 a wk is probably the limit . With broadband/phone & general bills all increasing the £20 hike on xbl would probably leave them out of pocket not in profit
Posted 15:11 on 28 October 2009
IndoorHeroes's Avatar

IndoorHeroes

Seems like Jerry Johnson is hearing what he wants to hear from old Pachtertron ;-)
Posted 14:56 on 28 October 2009
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