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Pachter: Xbox Live likely to get $100 Platinum service in the future

Tuesday, 31st August 2010 22:17 GMT By Stephany Nunneley

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Industry analyst Michael Pachter has weighed in the Xbox Live subscription increase, and predicts Microsoft will offer a $100 Platinum service in the future.

Pachter – who correctly predicted the $10 price increase last year – said the new price point will allow Microsoft to reinvest these earnings back into the service in order to offer more enhancements down the line.

“The extra $10 translates to around $100 – 150 million per year in additional revenue for Microsoft,” he told Industry Gamers. “I think that they will reinvest at least this much in developing other new applications, and will roll out a premium service with $100 – 200 million worth of enhancements.

“If they can get 2 million users to switch from the $60 plan to the $100 plan, they’ll make an extra $80 million a year, and can keep investing to try to grow that business.”

Pachter believes these enhanced offers could include extras like IPTV or similar functionality down the line, virtual credits, or even iTunes management through Xbox 360.

“The Xbox 360 can work as a media center, and conceivably could do things like managing a music library,” he said. “Although Apple and Microsoft aren’t the best of friends, I could see Apple letting Xbox Live members manage their iTunes accounts through their 360s, and other such premium services.

“I’m not the guy to speculate as to what they will offer (for example, I didn’t even know ESPN 3 existed before it was announced for the 360), but I’m sure that there are many talented and creative people at Microsoft working on such a plan right now.

“For all I know, the Platinum plan might include virtual goods credits for various Microsoft games. If members could get specialized Halo armor or weapons worth the extra $40, they might be more willing to sign up, and it doesn’t really cost Microsoft anything to offer things like that.

“As far as other media center applications, I think we’ll see baby steps on IPTV before we see a full roll-out of a cable-like service. More channels like ESPN 3, perhaps they will offer HBO Go or something similar. There are a lot of emerging services like Hulu, Epix, perhaps a premium YouTube service.

“I think that the possibilities are limitless, although it’s a bit early to speculate on what precisely they will offer.”

The new Xbox Live pricing goes into effect on November 1, but if you are a current Gold member, you can lock in your current price with an additional discount for $39.99.

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17 Comments

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  1. G1GAHURTZ

    Michael Pachter is famous.

    #1 4 years ago
  2. LOLshock94

    hes nt hes gay

    #2 4 years ago
  3. DSB

    He has to keep saying sensationalist crap because that’s the only way he’ll get on these blogs and sustain his livelihood.

    I like how he’s not even pretending like he knows what he’s talking about anymore, though. “For all I know…” “I’m sure…”

    Cute, mr Analyst.

    #3 4 years ago
  4. NightCrawler1970

    LOL @2

    #4 4 years ago
  5. Erthazus

    “I’m sure that there are many talented and creative people at Microsoft working on such a plan right now.”

    More like greedy ones.

    I want to say one thing for that: Microsoft Fucks the typical Online Gamer. But you are still paying for this piece of crap.

    Basically hardcore gamer just need good Online service to play games and thats it. That was created for PC like years ago before Microsoft created XBOX LIVE and everything was for free and it is free even now: Steam, PSN, Battle.net.
    And now you are paying to play Online additional bucks to play Online and that is ridicilous. Not to mention that they are going to increase a price for 10$.
    Hillarious thing here that i’m sure for 90% that you don’t use ESPN, Twitter or Facebook.

    Thats just balls and you are still going to pay for the LIVE.

    #5 4 years ago
  6. stretch215

    This guy is so full of shit. @5 stop trying to incite a riot with your sensationalist bullshit

    #6 4 years ago
  7. revsoul

    Everybody hated on Patcher last year when he said the $$ increase was coming & he got called out for it. He’s not Nostradamas but sometimes he gets things right

    #7 4 years ago
  8. Psychotext

    “He’s not a prophet but sometimes he gets things right”

    A stopped clock is right twice a day.

    #8 4 years ago
  9. revsoul

    I agree ‘Psycho’, but why so much hate for a guy doing his job?

    #9 4 years ago
  10. Happy Hardon Harry

    Wait a sec, you pay for a service (that’s your broadband) why should anyone have to pay, again, just to play online (XBL).

    I think anyone who pays for XBL deserves to be ripped of by MS for being such gullible sheep.

    #10 4 years ago
  11. The_Deleted

    “Big Company going to try and push it as far as it can to fleece it’s user base.”
    He might as well have named Activision over Microsoft, to be honest.

    #11 4 years ago
  12. hitnrun

    So…what, exactly, would they offer at that price point?

    To understand why Pachter sucks so much, you have to realize he doesn’t do this for us. He’s not a journalist. He’s a stock analyst for millionaire investors.

    In a sense, he’s like a miniature Microsoft or Activision: bullshitting his customers into giving him money. Sure, he’s wrong most of the time. Who cares? He’s like the weatherman. Are you going to become a meteorologist just to disagree with him?

    Gamers are a sensitive bunch, so we tend take things he says personally, but he’s not talking to us. His back is to us, and he’s running a con.

    #12 4 years ago
  13. natesaninja

    Michael Pachter is a used smelly douche anyone can throw around blanket statements and be right sometimes

    #13 4 years ago
  14. frostquake

    The thing with the $60.00 Price is I don’t have a Choice..if I want to keep all my Gold Account things like Netflix and such I have to upgrade…it is not a choice…I hope that they don’t force this with the $100.00 price and just let it be an option and not take away anything..SIGH!!!

    #14 4 years ago
  15. M2Kx

    @6: thank you :>

    #15 4 years ago
  16. DaMan

    sent to die then.

    #16 4 years ago
  17. OlderGamer

    Frosty

    I am in the same boat really.

    Instead of spending 100usd a year for LIVE I will invest that into a PS3 for netflix.

    #17 4 years ago