Xbox Live Price Increase Due November 1st

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Xbox Live users may feel a pinch as Microsoft increases the price of a yearly subscription to the service by $10 in North America, starting November 1st.

According to a recent post by Major Nelson’s blog, Xbox Live will finally see a price increase after eight years’ of service at $50 a year. Starting November 1st, a yearly subscription to Xbox Live Gold will cost $59.99, opposed to the current price of $49.99. A one month subscription will increase from $7.99 to $9.99 and three month subscriptions will see a raise to $24.99 from $19.99.

North America will not be the only region that is affected. In the UK, the price of a one month subscription will increase from 4.99 GPB to 5.99 GPB. The price of a month in Canada raises a dollar to $9.99 and a year subscription in Mexico rises from 499 to 599 pesos.

However, to sort of lessen the negative feelings of many Xbox Live users whose subscription will be ending aruond that date, Microsoft has a special deal in effect for North American U.S. customers, allowing them to lock in a year at $39.99.

Jesse Divnich, with industry analyst EEDAR, claims that this new price is still an incredible value. When launched originally in 2002, an Xbox LIve gold subscription would run about the same as an AAA video game,, $49.99. Due to inflation and the additional services being made available to Gold subscribers (ESPN, Facebook, Twitter, Netflix, Last.fm and Video Kinect), a $10 price increase is still an impressive price for customers.

However, this is an analyst, oen who does not necessarily voice the opinions of the gaming public. Reading the comments across multiple websites, I have found that, almost unanimously, gamers are extremely upset at this price increase, with some feeling betrayed. However, the general public does not take into account inflation or the payment for these added services. Many do say that they would not choose to pay for these additional services if it were up to them, however, Microsoft does add a lot of incentives to the service. In example, how they are able to pay for timed exclusives, as they did with GTA IV.

All in all, the choice of whether or not you support the Xbox Live subscription price increase is up to you, what do you think about this announcement?

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