For the majority of online gaming's existence, Xbox LIVE was the only service that was charging gamers to play online. At an annual cost of $50 it was a bit of a mystery as to why the other two major consoles, Nintendo's Wii and Playstation 3, but the experience you got from playing on Xbox LIVE made the cost worth every penny. There was this sense of community that the other consoles have been able to grasp and Microsoft's console is still the best online experience that you can have with the current console generation.
We now have word that Microsoft is thinking about bringing their Xbox LIVE service into the realm of Television. The Xbox 360 is set to redefine living room entertainment and the next inevitable step is the inclusion of television.
Over the last year, the Xbox 360 has evolved into much more than gaming console and has turned into a multimedia device. The inclusion of Netflix, Zune Marketplace,Twitter, Facebook, Last.FM, Video Kinect, and ESPN has broadened the the scope of consumers exponentially wide. Along with these new features, also came a $10 price increase. Jesse Divinch with industry analyst EEDAR sent out a statement accompanying the news, informing consumers that $60 is still "an incredible value."
"When originally launched in 2002, a Gold subscription cost the same as an AAA video game, $49.99. When taking into account for inflation ($50 in 2002 is roughly $60 in 2010) and the additional services available to Gold subscribers in 2010, such as ESPN, Facebook, Twitter, Netflix, Last.fm and Video Kinect, a $10 price increase still represents an incredible value to consumers"
Dennis Durkin, corporate vice president and chief operating and financial officer of Microsoft's Interactive Entertainment Business, said that 40 percent of Xbox Live members in the U.S. are spending their time on the console on non-gaming activities. Microsoft has 25 Million Xbox LIVE subscribers and half of them are Gold Members.
$60 isn't really that bad of a price to pay and it's clear that the non-gaming services are being used. Television is a natural evolution of the service, aside from web browsing. All of the features that have been integrated are great, but came at a price. Television could and probably will raise the cost again, and at something much higher than $10. Would you be willing to spend $100 or more annually for Xbox LIVE?
It's definitely a possibility with the scenarios that Microsoft seems to be discussing. According to undisclosed sources, talks of a "virtual cable operator" that will charge a monthly fee(on top of the Xbox LIVE Service Fee) for channels such as ABC, CNN, Fox, CBS, and ESPN.
The possibility of selling individual channels is also in discussion, which could be the better route to take. Someone who doesn't watch much TV but tunes in every Sunday to watch Dexter would love that option. Instead of paying for a bundle of channels, purchase the one that you want for a reasonable price.
It's a great idea that Microsoft is going out to offer cheaper alternatives to our standard Cable TV and Satellite providers, but what about those who don't wish to use this new feature? Much like the Free Membership that LIVE offers, you can't access the features stated above until you promote your account to the Gold membership. It's possible they may introduce an "Xbox LIVE Platinum." Allowing access to the television feature to those who wish to pay for it.
Utilizing the same formula they have now with Gold and Free Members. Not a big fan of playing games online? Stick with the Free Member subscription. Don't watch a lot of TV? Stick with Gold or Free Member. Hypothetically it should be as easy as that.
It's unlikely we'll here too much more about this for now. Maybe close to E3 or CES we may receive a little more insight on the matter, but for now it all seems to be up in the air and surrounded by speculation.
