The Xbox Live Price Hike Reversal Speaks Volumes of Microsoft
Xbox and Microsoft have gained a lot of good faith back from consumers after a troublesome eighth console generation dominated by PS4. At first, Xbox One seemed to focus inherently on multi-faceted capability, rather than doubling down on gaming itself. The console suffered as a result, but in the long-term, Microsoft has paved new roads to success with Xbox Game Pass, backwards compatibility, and more. However, most of all, Microsoft has shown that its unprecedented reception to the Xbox playerbase is the biggest improvement the company's made. Feedback has had a tangible impact on how Xbox has functioned, both one year ago, and one day ago.
Recently, Microsoft and Xbox announced and quickly walked back some changes that were coming to Xbox Live Gold subscriptions. Initially announced last Friday, Xbox Live Gold was going to increase each subscription tier nominally: monthly would rise by $1, three months would rise by $5, and six months would jump up to $20. However, as a result of significant outcry from fans, Microsoft did the unexpected: Not only did the company walk back the Xbox Live Gold changes entirely, but the company also doubled-down by not requiring Gold for free-to-play games. Arguably, no other console maker in the industry right now would've done the same.
Some kind of price change for Xbox Live gold was imminent, based on Microsoft's official removal of the annual Xbox Live Gold subscription option. Last year, Microsoft confirmed the removal of the 12-month Xbox Live Gold option from the Microsoft store, leaving only the monthly and three-month options available. Many theorized that Xbox Live Gold as a paid option would be going away in favor of free-to-play multiplayer, but that wasn't the case. However, nobody would've expected the yearly price for Gold alone to double in price to $120/year. However, that will no longer be the case, because Microsoft heeded the outcry of feedback it received for the decision.
Despite Xbox Game Pass Ultimate being the main subscription draw for the Xbox ecosystem, there are still many players who don't subscribe to Game Pass. Whether it's because they don't want to, or any other practical reason, many still solely subscribe to Xbox Live Gold for multiplayer. Raising that price would've especially affected those who only need to subscribe to Gold. In an update to the official announcement blog post, Microsoft directly addressed players and recognized its mistake, citing the fact that "connecting with friends is a vital part of gaming and we failed to meet the expectations of players who count on it every day."
It's not uncommon for any company, even outside of the gaming industry, to directly address its consumer base in such a candid manner. However, for Microsoft, it exemplifies how much the Xbox brand has changed in the wake of the Xbox One's initial release. Over time, Xbox has refocused into a consumer-friendly business model, recognizing and investing in better recognition of consumer feedback. Quickly rolling back the Xbox Live Gold price changes less than a day after these changes were announced, is a clear indication that Xbox wishes to maintain its consumer-friendly reputation imperatively, no matter the cost.
Undoubtedly, the decision to reverse these Xbox Live Gold subscription changes was not made lightly. It's easy to point out any number of examples of Microsoft's actions in the last five years that exemplify its ambitious plans for Xbox. The acquisition of Bethesda/ZeniMax Media, among the many other studio acquisitions like Ninja Theory, the innovations of Xbox backwards compatibility, or even the announcement and existence of Xbox Game Pass. Being the business that it is, Microsoft is understandably looking for ways to profit from its investment, especially when the Zenimax acquisition is valued at $7.5 billion. Evidently, raising the price of Gold was its initial decision.
What's especially powerful about this change is that Microsoft seems to have learned that doubling-down in the face of backlash can be detrimental. That's exactly what happened when the Xbox One was initially announced, as PlayStation 4 swept the rug out from under Microsoft for an entire console generation. Risking the alienation and potential separation of fans over a price change would've been a tough pill to swallow, but Microsoft didn't just reverse those changes. Instead, Microsoft doubled-down on reparations, and made free-to-play games exempt from Xbox Live Gold.
That's proof that this change wasn't just a reaction or a platitude to satisfy those who would've felt burned by the Gold price changes. Even when putting aside notions and arguments that Xbox "lost" the previous console generation, it's clear Microsoft wants Xbox to be perceived as consumer-friendly. Microsoft is relying on ambitious, long-term plans like Game Pass to expand its player base, and a price hike like the initially intended changes didn't match those long-term goals. Breaking down the consumer-business barrier, even if slightly, can only improve Xbox's good faith reputation.
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