Friday, September 3, 2010

The Cake is Not a Lie

And by "cake" I of course mean "Xbox Live price increase". Of course. Look for the following changes November 1, 2010:

- 1 month: $9.99
- 3 month $24.99
- 1 year $59.99

Microsoft is defending the decision by claiming that inflation (Live was originally launched in 2002) and added features make the increase worthwhile. No word on whether or not Sony plans the same for the Playstation Network, but odds are good, given the trend of the two companies for running even on price points. According to Jesse Divnich, VP of Analyst Services for Electronic Entertainment and Design Research (EEDAR):

"When originally launched in 2002, a Gold subscription cost the same as an AAA video game, $49.99. When taking into account for inflation ($50 in 2002 is roughly $60 in 2010) and the additional services available to Gold subscribers in 2010, such as ESPN, Facebook, Twitter, Netflix, and Video Kinect, a $10 price increase still represents an incredible value to consumers"

So, will gamers fork out an extra $10 a year to keep playing their Halo and their Call of Duty and Madden? Is that really even a question? I'll let the good folks at PA sum this one up:

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