Editor's note: I don't know what else to say other than Tobias' comparison is really astute. -James

Monday saw an announcement that the price of an Xbox Live Gold membership is going up. The new pricing schedule takes effect November 1st, with a one-year membership increasing from $50 to $60. Nerd rage quickly bubbled up across the Net, and some of it's totatlly justified
Larry Hryb, Director of Programming for Xbox Live, justified the price hike stating, "Since launching Xbox Live in 2002, we have continually added more content and entertainment experiences for our members, while keeping the price the same."
This is all true. When I first started on Xbox Live in 2005 it was specifically because I wanted to play games online. Since then, the advantages of Gold have grown. I get early access to game demos; I can use Netflix, Last.fm, Facebook, and Twitter in my living room; and I recieve weekly discounts on downloadable content. Moreoever, at this year's E3, Microsoft announced a partnership with ESPN in addition to Hulu Plus and AT&T U-verse support.

All of this content is supposedly inflating the price of Live Gold, a service whose core functionality is online gaming. This is a service that Microsoft's competitors and many gamers feel ought to be free. This is a service which has opened up more opportunities to advertisers while still charging a premium to its members. And this is a service that takes a cut from every peice of content sold in its online market. To me, the Xbox Live Gold service is starting to look a lot like cable TV.
If you subscribe to cable or satellite TV, you probably don't watch all the channels you get in your plan. You can choose how much to get for what price you want to pay to some degree, but you're always going to be subject to some amount of bloat that doesn't interest you in any given package. Xbox Live is starting down this path by broadening their stable of services to a point where everyone is going to find something don't care about. When Microsoft included these additional services in the initial lauch price, it was hard to find a reason to complain. Now the price is going up, but consumer choices are not.
As long as Live Gold remains the only avenue to play games online on Xbox, Microsoft will have a built-in audience for their premium subscription -- myself included. With all of these new services, Gold subscribers deserve more choices as to what services they can receive through Live and at varied price points. "Take it or leave it" is no longer sufficient. I've occasionally used Last.fm, I watch Netflix almost every day, and I've been salivating over Hulu Plus. But I have zero interest in ESPN, and I'd argue that the Xbox 360 and PS3 are the worst platforms for using Facebook and Twitter. I should have the prerogative to opt out of some of these "channels" (going with the cable comparison) that I don't need, and Microsoft should adjust the price of my subscription accordingly.
Xbox Live brings a lot to the table, but it's starting to put things on the plate that not everyone ordered. Give your consumers better choices, and we'll keep coming back for more of what's best for us.














