Analyst predicts Microsoft will hike Xbox Live price

Darren Allan

October 19, 2009

A research analyst from Wedbush Morgan has predicted that Microsoft could double the subscription cost of Xbox Live.

This forecast was made by Michael Pachter in a discussion. He said the price of a 12 month gold subscription would double from $50 to $100 over the next few years.

“You really want to hook every gamer who has a 360, you want them to buy all their games on 360, play everything multiplayer, pay you 50 bucks a year so that, in a couple years, it’s a 100 bucks a year,” Pachter said. “And that’s going up, we all know that – it’s a profit deal.”

This scenario seems a little unlikely to us. While we don’t doubt that Microsoft would love to charge double what they do now, it’s difficult to see how they could get away with raising what many already see as an expensive subscription price.

Particularly given that online play is free on the PS3. If that situation changes, it might become a different ballgame.


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