Earlier this week Wedbush Morgan analyst Michael Pachter commented that Microsoft may choose to raise the price of its annual Xbox Live subscription from $50 to $100. Pachter said this is lkely to happen within two years. During a recent sales call, Microsoft spokesperson David Dennis responded to this speculation [thanks Kombo].
"I don't foresee a scenario where we're going to double the price of LIVE anytime in the next couple months," he said. It's interesting that Dennis put it within the context of just two months (meaning the remainder of 2009). Does that mean Microsoft is actually considering bumping up the price sometime in 2010? Microsoft isn't saying, but it wouldn't surprise us if the company did bump it up to $60 or $70. $100 would be a bit shocking, though.
Dennis also talked a bit about Microsoft's accessories business on 360. "Our accessory attach rate is higher than anyone's," he said. "It's 4.1 for us, 2.2 for PS3, and 3.4 for the Wii. That mirrors software too. We typically have a very high attach rate, which--getting back to total dollars spent--shows the high level of consumer engagement with the platform. They don't just buy it once with the pack-in game, then sit around and not use it. They're out actively spending, which is great for the industry."
He then went on to defend Microsoft's accessory pricing. Many gamers have complained about the relatively high MSRPs on the official Xbox 360 hard drive and wireless adapter, but Dennis feels the pricing is justified: "Accessory pricing is certainly something we've heard a lot about from consumers. That said, we go to great lengths to ensure the accessories we're selling are high quality. A lot of the price comparisons you hear have to do with the hard drive, but your average off-the-shelf PC hard drive isn't as exhaustively tested or run through the same quality and safety compliance checklists we employ."
Honestly, we think that's a bogus excuse, and it makes you appreciate being able to buy and swap out standard hard drives in the PS3.
5 Comments
11 months ago
That accessories quote by Dennis doesn't hold any water - it's all about the $$$ Microsoft can make by having a monopoly on accessories for their console.
11 months ago
Commenting on a story while on your honeymoon... impressive. Hope the wife is cool with it. Ha.
11 months ago
Yes, the BS meter is off the charts for this one, mostly because of the accessories quote.
If Sony is okay with letting people swap out drives freely, there's no reason that Microsoft can't allow it. MS just gives a 2.5" HD a proprietary connector and that is the only reason the hard drive costs twice as much as it should. Honestly, what testing do they do?! It's a frakking hard drive!
Also, I'd like to note that when I took a gaming-related survey a few hours ago, I was kicked out after being asked my thoughts on Xbox Live, basically calling it a scam while carefully avoiding that word. ;-) The survey site did not contain any MS or Xbox logos, however.
To ask someone to shell out $50/yr for what can be done on the PC for free just because it's on a gaming console does not make that right, especially with the increasing use of TV-connected computers.
11 months ago
well, i do have gold at the minute but it is due to b renewed in a couple of weeks but i wont bother as i play world of warcraft most of the time but when the time does come when a couple of AAA titles do come out for the 360 i wont be renewing if the price is increased cause it wont be worth it for me, shame really as most people will feel the same way and microsoft will see figures fall for their subscribers.
6 months ago
the price is increased cause it wont be worth it for me, shame really as most people will feel the same way and microsoft will see figures fall for their subscribers.
micro sd card
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