Market Overview

Microsoft Says 'We Messed Up' After Facing Outrage Over Xbox Live Gold Price Hike

Share:
Microsoft Says 'We Messed Up' After Facing Outrage Over Xbox Live Gold Price Hike

Microsoft Corporation (NASDAQ: MSFT) issued an apology for hiking the price of its Xbox Live Gold subscription service and said it was reversing its decision.

What Happened: The Redmond, Washington-based tech giant had last week announced a $1 price hike for a one month Gold membership and a $5 hike for a 3-month membership. The price increase was not meant to affect existing online 12-month or six-month Xbox Live Gold members, Microsoft said in a blog post.

The hike would have doubled the cost of an annual pass and a six-month pass would have cost $60.

The resulting outrage was evident on Twitter, where one user said, “Damn [I] might switch to play station.”

Microsoft buckled under criticism from its userbase and backpedaled on the prices over the weekend. 

“We messed up today and you were right to let us know. Connecting and playing with friends is a vital part of gaming and we failed to meet the expectations of players who count on it every day. As a result, we have decided not to change Xbox Live Gold pricing,” the tech giant said.

Why It Matters: Microsoft said it will drop the requirement for a subscription to Xbox Live Gold membership for access to free-to-play games. This is in line with what rivals Sony Corporation (NYSE: SNE) and Nintendo Co. Ltd (OTC: NTDOY) offer.

The company said price changes would not affect Xbox Live Gold members and they would stay at the current price for renewal.

New and existing members can obtain Xbox Live Gold for the same price they pay today, which in the United States is $9.99 for one month, $24.99 for 3-months, $39.99 for 6 months, and $59.99 for 12-months.

Price Action: Microsoft shares closed nearly 0.4% higher at $225.95 on Friday and gained 0.33% in the after-hours session. 

Read Next: Wedbush Raises Target As It Predicts Cloud Services Will Lift Microsoft Above Wall Street Estimates

 

Related Articles (MSFT)

View Comments and Join the Discussion!

Posted-In: eSports Gaming Consoles PlayStation xboxNews Retail Sales Events Tech Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com