Microsoft announced that they will be raising the price of Xbox Live, to $60. Monthly memberships are also affected. Starting on November 1, the price of Xbox live moves away from the $49.99 price point and to the new price of $59.99. If you're only interested in being a member one month at a time, that price will move up from the current $7.99 to $9.99. Xbox Live will also cost more in the UK, Mexico, and Canada.
In a statement, Microsoft's Major Nelson stated "Since launching Xbox Live in 2002 we have continually added more content and entertainment experiences for our members, while keeping the price the same. We’re confident that when the new pricing takes effect, an Xbox LIVE Gold membership will continue to offer the best value in the industry. "
Examining the "value proposition," it's notable that the only console in the current lineup of EITHER portable OR console devices which require payment to play online is Microsoft's Xbox. Still, they do have a point. In 2006, it was widely speculated that competition from PlayStation Network would drive down the cost of Xbox Live. In fact, several in the industry predicted that Xbox Live would adopt a free model. In fact, quite the opposite has happened. PlayStation Network has begun offering a paid service, and Xbox owners still have a sad choice: play online with friends and pay for the privlage, or get a couple of services online (but not online play) for free.
Fortunately, several retailers, including Amazon.com (linked in the ads around this article) are offering Xbox Live subscription cards for $40. Likewise, NewEgg.com also has several Xbox Live cards available at a discount, for now.
Michael Pachter (who is often quite famously wrong) predicted in October of last year that the price of the service will reach $100 over time.
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