@ infinity Yes, there would be a market, but it would be substantially smaller than the current market. MS would be stupid to jack up the price of live.

As Infinity wrote, MS could make the deal look attractive to new users. With regards to old users, as MS controls each web service accessible through Live, including free ones, it's easy to add "features" to make the new price look attractive to a good share of old users. And as joshin69 noticed, it's simply MS nature to behave so whenever it can, Pachter just descried it. If taking into account old users not unhappy and new users, unhappy old users are a minority small enough, they are screwed. Anyway, MS could always keep the old price only for old users not wanting to pay more, but stopping adding features to them and dedicating more servers to new expensive subscriptions.

The only thing that he has said that is correct was just said! REJOICE!

No one who plays on a PC will even bother paying for LIVE. Paying to play online? I don't think that has ever been done outside of MMOs.

100 dollars a year will only happen if their console competitors are completely eliminated from the market. With no competition it will be easy to do.