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Pachter Predicts A Premium Xbox Live Memebership Option
Sometimes analysts nail their predictions. For instance, Wedbush Morgan go-to guy Michael Pachter prognosticated an Xbox Live membership rates hike a full year before Microsoft made it a reality. Now Pachter thinks Redmond is readying a new $100 premium membership with added bonuses.
In talking about the recent price hike, Pachter told IndustryGamers that "The extra $10 translates to around $100 - 150 million per year in additional revenue. 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 two 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."
But what could Microsoft possibly offer to entice gamers to shell out the extra cash? "The Xbox 360 can work as a media center, and conceivably could do things like managing a music library," Pachter guessed. "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 armour 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."
Since Apple's music and video store is accessible directly through iTunes, I find it hard to believe Microsoft would be open to this kind of partnership considering how heavily the company has invested in making the Zune store a prominent destination on Xbox Live. Conversely, I have an equally hard time believing that Apple would offer a crippled iTunes version for Xbox Live that turns off access to its store if Microsoft so requested.
What would entice you to pay an extra $40 a year for Xbox Live?
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