That was fun, huh Pachter?


About a year ago the games industry's resident Economist, Michael Pachter, made the prediction that the price for Xbox Live Gold subscriptions would increase, everyone called him an idiot. I don’t believe I remember any person, including my self agreeing with his estimation. I more so don't remember having an opinion because it was just too far flung in the future. The proposition that Microsoft, after being overwhelmingly successful in most aspects, would increase the only other pure profit revenue they had seems extremely possible.

He proposed the idea that in order to bring PC gamers into the console market, Microsoft is going to need to put something that PC gamers can only get on the Xbox 360. Microsoft has only one thing that it can offer over the PC games that everyone has available: The online experience of specific games. These games of course are only accessible over Xbox Live Gold Memberships.

This is where I don’t see the logistics of this argument, at least brought into fruition with today’s announcement. If what Pachter said is true about Microsofts intent, wouldn’t this be counter-productive? Wouldn’t increasing the price of entry into a multiplayer experience (when PS3 or PC does it for free) only hurt the entrance of new consumers coming over? Even so, Microsoft has stated that they want to bring more PC support to the board. Maybe this whole 10 dollar increase is money they can put towards that, although I doubt Microsoft is struggling. 


Still, If I can quote twitter today @HardGoreGamer: "pachter should just wear a wizards hat wherever he goes. He's certainly earned the right to do so."
31 Comments
32 Comments
Posted by Nytrik

About a year ago the games industry's resident Economist, Michael Pachter, made the prediction that the price for Xbox Live Gold subscriptions would increase, everyone called him an idiot. I don’t believe I remember any person, including my self agreeing with his estimation. I more so don't remember having an opinion because it was just too far flung in the future. The proposition that Microsoft, after being overwhelmingly successful in most aspects, would increase the only other pure profit revenue they had seems extremely possible.

He proposed the idea that in order to bring PC gamers into the console market, Microsoft is going to need to put something that PC gamers can only get on the Xbox 360. Microsoft has only one thing that it can offer over the PC games that everyone has available: The online experience of specific games. These games of course are only accessible over Xbox Live Gold Memberships.

This is where I don’t see the logistics of this argument, at least brought into fruition with today’s announcement. If what Pachter said is true about Microsofts intent, wouldn’t this be counter-productive? Wouldn’t increasing the price of entry into a multiplayer experience (when PS3 or PC does it for free) only hurt the entrance of new consumers coming over? Even so, Microsoft has stated that they want to bring more PC support to the board. Maybe this whole 10 dollar increase is money they can put towards that, although I doubt Microsoft is struggling. 


Still, If I can quote twitter today @HardGoreGamer: "pachter should just wear a wizards hat wherever he goes. He's certainly earned the right to do so."
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Posted by Claude

This is where Pachter does his best work.
 


Actually, I like Pachter good for him.
Posted by KaosAngel

I ignore everything he says.

Posted by GreggD
@Claude said:
" Actually, I like Pachter good for him. "
So do I.
Posted by LiquidPrince
@KaosAngel said:
" I ignore everything he says. "
Why? He's a good guy, and is often right.
Posted by ReyGitano

Talking about it with my friend, the conclusion we came to was that this money is going to go towards landing exclusive deals again, something Microsoft did a lot of early on, but something you don't see as much now. 
As for Pachter, he's not always right, but it's always kinda funny when he is. Can't wait for Wii HD to be announced for Christmas. 
Also I need to stop playing Persona 4... I keep thinking it's November when it's still August.

Posted by HypoXenophobia

I wasn't expecting a price increase till next console. But man, Microsoft has quite a bit of balls to do this.

Posted by trophyhunter

yeah that guy actually knows what he is talking about.

Posted by Claude
@GreggD said:
" @Claude said:
" Actually, I like Pachter good for him. "
So do I. "
I even watch the Pach-Attack.
Posted by HandsomeDead

Just wait till he gets one tiny miniscule detail wrong and everyone will be shitting on him again.

Posted by ProfessorEss

Man I'd love for them to get him in for a Bombcast.

Posted by babblinmule
@Claude said:
" @GreggD said:
" @Claude said:
" Actually, I like Pachter good for him. "
So do I. "
I even watch the Pach-Attack. "
The Pach-Attack is without a doubt, the greatest thing Gametrailers has ever done! And did anyone see the episode where they showed his house? That man has almost more money than God!
Edited by Tru3_Blu3

 Pachter is a charming idiot.

 
PC is a genre, lol.
Posted by DonutFever

He Reliable.

Posted by MrKlorox
@ProfessorEss said:
" Man I'd love for them to get him in for a Bombcast. "
Agreed. He obviously likes Jeff and vice versa. I wouldn't rule it out. It'll probably get scheduled the next time they're both on Bonus Round.
Posted by crusader8463

They are just testing the waters. They want to see how far they can bend people over and have there way with there wallets before people say enough is enough.

Posted by evanbrau

He's an economist so see's things in the long run rather than the hyper short term that most of the gaming industry and media seem to operate in.

Posted by kelbear

The $10 is just extra profit. There is no grand plan here.

Posted by Dalai

Pachter gets a lot wrong, but give him credit for when he's right on. I don't think any of us can do his job any better.

Posted by Necrotoxin
@ProfessorEss said:
" Man I'd love for them to get him in for a Bombcast. "
Yes! Make it happen GB.
Posted by ch13696

The only reason I can see Microsoft raising the price on Xbox Live is to make up for the cost of running Xbox Live. Just like how all the publishers raised the price of their games from $50-60 to make up for the costs to make the games. Still, it's considered a bad idea because we all know it doesn't cost as much to hire IT people to run the servers compared to hiring developers to make the game.

Posted by Rxanadu

When most people think of high prices, they either think they are getting screwed out of a deal or they think whatever has such a high price must be amazing.  Microsoft must be thinking most PC gamers have the latter type of mentality.  If you think about it, a company called Microsoft is probably taking basic principals of microeconomics (which talk about what the individual consumer would want (and expect) out of a deal) into account in all of their business decisions.  Microsoft has to think this way: if PC gamers have a mentality that "more money means more content", then that's more money for them.  
 
So there ya go: Micro$oft thinking about their wallet.

Posted by Ineedaname

I do like him as a person.
But come on, he makes so many calls one is bound to be right.
 
The latest I remember is "We'll see a Wii HD at E3"

Posted by jkz

I love Pachter. He does a good job of...doing his job as an analyst, but he's also become one of the best personalities among the games press.

Posted by ZanzibarBreeze

I like Michael Pachter. He's awesome.

Posted by BraveToaster

I never expected this to happen;  I thought that the price would eventually decrease. 

Posted by Ujio
@trophyhunter said:
" yeah that guy actually knows what he is talking about. "
Sure, as long as he has his trusty 8-ball around:

Posted by xyzygy

He's also the guy who said Mass Effect 2 wouldn't sell, right?

Edited by Jeust

Eventually all prices rise. He just stated the obvious, and as Microsoft sure loves their money, it would be only natural for the price of Live to go up.  
 
I didn't feel that as anything mindblowing.  
 
About bringing the PC gamers, Microsoft has been on the market and as their policy to make advantageous deals for them and the developers they work with. Look at Activision, Rockstar, Remedy, Bungie, and that's what they are continuing to do. I don't think much will change, apart from the introduction of Kinetic. 

Posted by Dolph_Zigler
@Dalai: 
Hi, I'm Dolph Zigler.
Posted by Hamst3r
@Tru3_Blu3 said:

"  Pachter is a charming idiot.

 
PC is a genre, lol. "

This is why we can't have nice things.
Posted by Nytrik
@Jeust said:
" Eventually all prices rise. He just stated the obvious, and as Microsoft sure loves their money, it would be only natural for the price of Live to go up.   I didn't feel that as anything mindblowing.   About bringing the PC gamers, Microsoft has been on the market and as their policy to make advantageous deals for them and the developers they work with. Look at Activision, Rockstar, Remedy, Bungie, and that's what they are continuing to do. I don't think much will change, apart from the introduction of Kinetic.  "
This is probably where abouts I'm at on the entire subject. If I may re-iterate. 
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