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Microsoft to increase Xbox Live Gold price on November 1

Microsoft has just announced, through Major Nelson’s blog, that there will be an increase to the price of the Xbox Live Gold subscription in the United States, United Kingdom, Canada and Mexico. The cost of the Xbox Live Gold subscription in all other countries will not change. This change will come in to effect on November 1st 2010.

Below is a table of the increase in prices for the Xbox Live Gold subscription (M = month(s)).

US

Current

1M Gold:  $7.99

3M Gold:  $19.99

12M Gold:  $49.99

Starting Nov 1, 2010

1M Gold:  $9.99

3M Gold:  $24.99

12M Gold:  $59.99

UK

Current

1M Gold:  4.99 GBP

Starting Nov 1, 2010

1M Gold:  5.99 GBP

Canada

Current

1M Gold:  $8.99 CAD

Starting Nov 1, 2010

1M Gold:  $9.99 CAD

Mexico

Current

12M Gold:  499 Pesos

Starting Nov 1, 2010

12M Gold:  599 Pesos

 

Microsoft is increasing the Xbox subscription price because they have added so much content to the service since 2002 that they need to increase the price to keep it viable. Microsoft has incorporated social networking (through Facebook and Twitter), avatars, instant HD film streaming (through Netflix and Zune) and will soon be bringing lots of music into the living room through Xbox Live Gold. However, Microsoft is thought to have made over $1 billion in 2009 through its Xbox subscription. It is therefore questionable if this price increase is necessary.

With both Kinect for Xbox 360 and Windows Phone 7 featuring Xbox Live and going on sale in the coming months, it is likely Microsoft will be trying to capitalize on the increase in new customers. This is probably the prime time for the company to increase their prices with the increase of potential Xbox Live Gold subscribers in the coming year. It is not necessary for users to have an Xbox Live Gold subscription to use either Kinect or the Xbox Live integration on Windows Phone 7 as Microsoft also offer a free Silver subscription, but not all features are included.

It is not all doom and gloom though for those Xbox Live subscribers in the US, UK, Canada and Mexico as Microsoft wants to reward its current subscribers with a discount of 30% on renewing one’s subscription. You might want to head over to the price lock page now and save money on your Xbox Live Gold subscription. 

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