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Microsoft Corporation (NASDAQ: MSFT) apologized for raising the price of its Xbox Live Gold subscription service and said it was reversing its decision.
What happened: The Redmond, Washington-based tech giant last week announced a price hike of $ 1 for a one-month Gold subscription and a $ 5 increase for a 3-month subscription. The price increase was not intended to affect existing 12- or 6-month online 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 indignation was evident on Twitter, where one user said: “Damn [I] could switch to the reading station. “
Xbox users have to sell their Xbox just to be able to get Live Gold on Xbox pic.twitter.com/TIYDwg5aFp
– zay (@hruyaz) January 22, 2021
Microsoft bowed under criticism from its user base and backed down on pricing over the weekend.
“We made a mistake today and you were right to let us know. Connecting and playing with friends is a vital part of the game and we have failed to meet the expectations of the players who rely on it every day. As a result, we have decided not to change the prices of Xbox Live Gold, ”the tech giant said.
Why is this important: Microsoft has said it will drop the Xbox Live Gold subscription requirement to access free games. This is consistent with what rivals Sony Corporation (NYSE: SNE) and Nintendo Co. Ltd (OTC: NTDOY) offers.
The fact that you don’t need Xbox Live Gold AT ALL to play Halo Infinite Mutiplayer (or any F2P game) is huge. I’m so glad Microsoft listened to the community on this one. pic.twitter.com/iD3CzSG8E9
– UberNick (@UberNick_) 23 January 2021
The company said the price changes will not affect Xbox Live Gold members and will remain at the current renewal price.
New and existing members can get Xbox Live Gold for the same price they pay today, which in the US 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 more: Wedbush raises target by forecasting cloud services to lift Microsoft above Wall Street estimates
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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