CNN/Money  
graphic
News > Technology
graphic
Microsoft sets Xbox Live pricing
Pricing holds steady for current subscribers. Monthly fee also introduced.
May 9, 2003: 1:47 PM EDT
By Chris Morris, CNN/Money Staff Writer

NEW YORK (CNN/Money) - Microsoft unveiled its pricing plan for its online gaming service on Thursday, offering a pair of options for Xbox owners.

A one-year renewal to the service this fall will cost $49.99 -- the current price of the Xbox Live starter kit. Less enthusiastic players will have the option of a monthly fee of $5.99, allowing them to play only when games appeal to them (i.e. sports fans who prefer to play only during the season).

Enrolling over 350,000 subscribers in just six months, Xbox Live has been a big success for Microsoft (MSFT: Research, Estimates) -- bigger than even the company was expecting. Widespread praise has helped, but a big draw for consumers has been the free year of service included in the $50 starter kit. Starting in mid-November, that starter kit will climb to nearly $70. It will once again include a headset, one year's service and trial games for new players.

RELATED STORIES
graphic
Trouble ahead for Xbox Live?

Microsoft is also hoping to capture Xbox Live fence-sitters by offering two-month free trials of the service with select games. Trial players won't be able to talk to their opponents without purchasing the headset (which will be sold separately for $30, but they will hear the usual online chatter and trash talking via their TV's speakers.

Wall St. analysts applauded the pricing structure, saying Microsoft had selected a pricing structure that will please not only hardcore gamers, who would likely have paid an even higher fee, but a mainstream audience -- which has been very reluctant to pay for online gaming to date.

"The price point is certainly an impressive value statement," said John Taylor, managing director and analyst for Arcadia Investment Corp. "I think the going assumption is you have to pay about $10 a month to be involved in a gaming community like this, so to offer a one time fee of $49.99 is going to make it a lot less challenging for kids or teens to get permission to play. I think it's a key price point position."  Top of page




  More on TECHNOLOGY
Honda teams up with GM on self-driving cars
The internet industry is suing California over its net neutrality law
Bumble to expand to India with the help of actress Priyanka Chopra
  TODAY'S TOP STORIES
7 things to know before the bell
SoftBank and Toyota want driverless cars to change the world
Aston Martin falls 5% in its London IPO




graphic graphic

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.