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to me it's not a big deal, it's 10$ extra for a whole year.

I don't really care. I have tons of *exclusive* 360 games on my PC already and play for free. I question the need, but I am aware that there are actual exclusive games on 360 that aren't on pc, so...meh

But I do have a question about the "inflation" argument.

Did they really feel the need to increase the price of their highest margin product? Like how much does it actually cost them to provide you with the service?