Xbox LIVE Price Increase Explained

By The Splintercat, 8 years ago
In August we reported that from November 1st the price of Xbox LIVE would increase. Microsoft offered no explanation for this increase at the time, but Xbox Live's marketing senior director Craig Davison told Gamasutra what he felt justified the move.

Back in 2002, we launched at 49 bucks, which works out to about $4.17 a month, and we’ve held steady for that entire time. Now what we’ve always been very passionate about is that quality needs to be there, but more importantly, the consistency. So if I’m playing Halo: Reach, Gears of War, Call of Duty, the consistency of the service and the experience needs to be there regardless of what that entertainment application is.

After pointing out the exclusive titles such as Halo:Reach and Gears of War, he highlights how Xbox LIVE is first for providing its customers with DLC and again reminds us of the exclusive franchises.
Now we get those Call of Duty map packs before anybody else does. We’ve got Gears and Halo, of course, as exclusives. We continue to get exclusives on the service as well. And we’ve gone from 400,000 members in our first year to 25 million.

We have recently had the dashboard update and he says how he wants the service to continue to grow.
So during that time, we’ve definitely got to fund it, and we want to add more and more and more. ESPN is a great example. No extra charge for Xbox Live Gold members. But we want to continue to bring that content in. We also want to continue to innovate on all dimensions, whether it’s social, entertainment, or gaming. So there you go.
It seems that the exclusive titles and services are the main justifications for the rise in price. As Craig Davison points out the price has held steady since its launch and considering how the standard of living, pretty much the World over has increased, is it understandable that a service such as this would eventually follow? Though increases in price will never be a popular thing, do you think Xbox LIVE offers value for money? Has the rise in price put you off the service all together?

With one billion hours spent on Xbox LIVE every month that might be a whole lot of Xbox, but it's also a whole lot of money.