Gamasutra is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


Gamasutra: The Art & Business of Making Gamesspacer
View All     RSS
August 19, 2019
arrowPress Releases







If you enjoy reading this site, you might also want to check out these UBM Tech sites:


Analyst: Xbox Live Subcription To Develop More Tiers, Higher Price Options

Analyst: Xbox Live Subcription To Develop More Tiers, Higher Price Options Exclusive

October 19, 2009 | By Leigh Alexander

October 19, 2009 | By Leigh Alexander
Comments
    2 comments
More: Console/PC, Exclusive



Could the price of an Xbox Live subscription reach $100? Wedbush Morgan analyst Michael Pachter thinks the next couple of years could see such a price point, visualizing a time when online game service offerings are priced like cable packages.

"Microsoft makes a profit from XBL, and is interested in increasing that profit," the analyst tells us. "They don't want to give anything away for free, and porting of Xbox 360 games to PC that have a multiplayer component exposes them to the potential that some users will quit XBL and buy the PC version to play multiplayer."

Pachter is careful to state he's not aware of any plans on Microsoft's part to increase pricing. "I think that Microsoft will wait until the installed base is quite large -- perhaps 50 million Xbox 360s -- and start to raise price on the existing user base," he suggests.

Microsoft continues to broaden the service offering on Xbox Live with social and multimedia features like Netflix, Twitter, Facebook and Last.fm cropping up just over the last year. It may make sense, Pachter says, for the company to offer all of these as part of a "premium" Xbox Live service at a slightly higher price point.

"I think of it the same way as cable TV -- a flat rate for "basic" cable and a higher rate for various bundles," the analyst says.

A push toward higher subscription fees for online play, Pachter adds, may be supported by publishers also eager to capitalize. "I think that there is a desire on the part of several publishers to charge for online gameplay," he says.

"EA held out for a couple of years by not putting sports games on XBL, since the company felt it should get the money from subscribers who played its games," he explains. "Activision has made comments lately about monetizing online game play (think Call of Duty), and I could see a premium service that offered discounts for DLC and included some kind of online multiplayer that wasn't available on XBL Gold."

"In any case, the addition of new features on XBL seems to me to be driven by a desire to raise price ultimately. I could be wrong; as many of you know, it won't be the first time."

Microsoft declined to comment on this article, calling it "rumors and speculation."


Related Jobs

HB Studios
HB Studios — Lunenburg/Halifax, Nova Scotia, Canada
[08.19.19]

Experienced Software Engineer
Deep Silver Volition
Deep Silver Volition — Champaign, Illinois, United States
[08.16.19]

Senior Engine Programmer
Insomniac Games
Insomniac Games — Burbank, California, United States
[08.16.19]

Lead Character TD
Wargaming.net
Wargaming.net — Austn, Texas, United States
[08.16.19]

Senior Community Manager, World of Warships









Loading Comments

loader image