Alright last generation Microsoft got away with charging gamers for every year they spent on Microsoft's X-Box Live service. What about their pricing and can they continue to charge.

On the origional X-Box , Microsoft charged over 50$ a year for users to connect and play online. Their service was the best the only true online network in the console gaming world. Sony's online service blew and Nintendo's was virtually non-existant. Microsoft could charge because they monopolized online gaming!

This generation Microsoft realized Sony would be pursueing online just as hard as they had. So seeing this in the future Microsoft offered a free online network named X-Box Live silver (maybe wrong name) this would be free but was extremely limited. X-Box Live Gold still cost over 50$ a year!

But can Microsoft continue charging for X-Box Live or do they need alternate sources of income. Nintendo relies on Virtual Console profit to run their online network, their many features all cost consumer's money including in the near future things like the Internet channel (opera browser), Sony's service is also free with many new features being announced every month.

So with Sony's online network having today announced big success 1.3-million users online and Nintendo having also confirmed millions of downloads. Is Microsoft service still superior enough to cost 50$ a year, while the competition's is free? Will Microsoft suffer from charging while its competitor's rise through the ranks and see more profit from their online divisions then Microsoft does?

Will Microsoft go free X-Box Live anytime soon? 

For one, live-silver does not have online gaming, just content and downloads. So it is more like Wii's current setup where it has moves and demos, Wii has Opera. Two the Gold membership is not $50 per year, it is only $35.

Now, as for the real question. I don't see how MS could keep it for a cost. Either it will become free or they will give free downloads per month to people who pay the membership fee and Silver will then include online play. However, the other question is how can sony afford to give all of that away. It isn't cheap to host tons of servers worldwide for the millions of users who will play online. Let alone home 'game' which is sort of similar to a mmorpg. These type of games for the same reasons always charge a montly fee. Which is much more than live gold service btw. I think this is another mistake for sony, personally, or that they will not give you Home for free just online play as you have now. Home may be changed to have a low yearly cost and the MS would just match that. After all it wouldn't be the first time Sony has changed there public pricing or reversed ealier promises.

 I was refering to the Canadian price I'm sorry I usually put CDN/USD at the end of any of my price talks! I haven't looked intoLive myself but have friends who have the service (Since I'm a Wii owner, no 360). Though a currency exchange shouldn't make a 15$ differance that's absurd.

As for Sony's descision. I think Sony made the dumb descision to compete with Microsoft. Sony got greedy wasn't happy wanted to continue expanding from the PS2's market share. Sony realized Microsoft had the niche for hardcore gamers the graphics the online they descided they had to out perform Microsoft. This was a very stupid decision as we see today. Sony could have stuck to a more competitive position by simply matching or comming close to 360's power. Their whole push to be most powerfull has put them in a very bad position.

I however think Sony will realize this new direction is suicide, not sure what they will do to the PS3 but I think they will likely shift alot of the focus off PS3 and towards PSP in the short term. I have a feeling Sony will reshift focus off of PS3 diverting alot of assets to PSP developement (Actually turning a profit) they will put just enough effort to keep PS3 alive , then come 2011 they may choose to delay the PS4 or if the PS3 is beyond saving they may release PS4 in 2010 alongside Microsoft's next X-Box! 

$35 in US? God europeans are paying €60! ($80)

superchunk, can you provide a link that says it is $35 USD because all I can find says $50.

 quoterrimus...

"Gold Membership costs £39.99 for 12 months and £14.99 for 3 months"

http://www.xbox.com/en-GB/live/xbox360/gold/signuprequirements.htm

 £39.99=58.97 EUR

£39.99= 80.15 $

http://www.xbox.com/it-IT/live/xbox360/gold/signuprequirements.htm 

"L'abbonamento Gold ha un costo di 59,99€ per 12 mesi e di 19,99€ per 3 mesi."

 59,99€ =81.52$

xboxians often lie...

but returning in topic...

Nintendo 

-FREE ONLINE GAMING

 -EXTRA FEATURES PAYING.

Sony

 -FREE ONLINE GAMING

 -EXTRA FEATURES PAYING.(BASE FREE)

 -PAYING EXCLUSIVE ADD-ON FOR GAMES(LEVELS, ARMIES, TRACKS,CARS ETC.)AND FOR HOME.

Microsoft 

-PAY-PER-PLAY

-EXTRA FEATURES SOME FREE SOME TO BUY...

in the end best is Nintendo one.

they only charging for extra features.

(still I don't need to use a web browser on a console...pc does it the best... even if i got my FREE copy of Opera on Wii!!!!)

The one major justification for MS:

Every game is online atleast in some respects. As far as I know/remember, no Nintendo titles for the Wii (as of yet) are online at all. You pay the $35/USD to get lots of content. Eventually, if Sony played their card(s) right, they'd do a better job, but their at about month 2 vs. MS. MS hit the ground running with the arcade games, and just now, Sony is getting a few good hits.

IMO, its worth the $3 a month it costs.

the reason why MS is a pay service is because MS provides the infrastructure. Sony and Nintendo, on the other hand, provide nothing. That means the game company that makes the game has to provide the servers, etc, and multiplayer becomes much more expensive for the company.

If Xbox Live Gold was to be fre, then MS would have to give up their servers and put the burden on the game developers. It would mean less online titles and less integration between services. 

You pay the extra money for the focus on online. 

from http://www.xbox.com/en-US/live/memberships/?WT.svl=nav and links on that page.

Silver package: (free)

• Create your gamer profile
• Create and maintain a friends list
• Access Xbox Live Marketplace including Xbox Live Arcade, demos, and trailers
• Send and receive text and voice messages
• Join in special Xbox Live Gold trial opportunities
• Access massively multiplayer games

 Wii's system is yet to be fully disclosed. Basically I see better in Opera, but worse in Wii numbers exchange. It should have many of the same additional features due to Wii's use of gamespy's systems.

PS3's system, as advertised, will seem to have everything that Gold offers and more. More interesting Home layout and ability to surf internet. 

@omgwtfbbq - sony and nintendo are now also providing the infrastructure. They did not last gen and that is why they both failed at online capability. Nintendo has the system continuously expanding since the launch of the DS's wifi service and sony is now doing the same in prep for Home.