So, Microsoft, Why The Xbox Live Price Hike?

This week, the price of a subscription to Xbox Live Gold went up. Want to know why? Here’s the reason Microsoft is peddling.

“In 2002 it was strictly multiplayer gaming,” Xbox Live’s Craig Davison told Gamasutra. “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.”

“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.”

That second paragraph, as rough as price increases are, it’s understandable. As is the argument that keeping the price at $49 for eight years in the face of inflation amounts to a saving of sorts. But that first one…I know it’s not what he meant to say, but it sure comes across as “these exclusives cost us millions, and we’ve got to get some of that back”.

Which won’t sit well with people who don’t give a hoot about exclusives.

Interview: Microsoft’s Davison On How Kinect Will Help Xbox Live Ramp Up [Gamasutra]