Microsoft Says 'We Messed Up' After Facing Outrage Over Xbox Live Gold Price Hike
Microsoft Corporation (NASDAQ: MSFT) issued an apology for hiking the price of its Xbox Live Gold subscription service and said it was reversing its decision.
What Happened: The Redmond, Washington-based tech giant had last week announced a $1 price hike for a one month Gold membership and a $5 hike for a 3-month membership. The price increase was not meant to affect existing online 12-month or six-month 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 outrage was evident on Twitter, where one user said, “Damn [I] might switch to play station.”
Xbox users gotta sell their Xbox just so they can get Xbox live gold pic.twitter.com/TIYDwg5aFp
— zay (@hruyaz) January 22, 2021
Microsoft buckled under criticism from its userbase and backpedaled on the prices over the weekend.
“We messed up today and you were right to let us know. Connecting and playing with friends is a vital part of gaming and we failed to meet the expectations of players who count on it every day. As a result, we have decided not to change Xbox Live Gold pricing,” the tech giant said.
Why It Matters: Microsoft said it will drop the requirement for a subscription to Xbox Live Gold membership for access to free-to-play games. This is in line with what rivals Sony Corporation (NYSE: SNE) and Nintendo Co. Ltd (OTC: NTDOY) offer.
The fact you wont 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_) January 23, 2021
The company said price changes would not affect Xbox Live Gold members and they would stay at the current price for renewal.
New and existing members can obtain Xbox Live Gold for the same price they pay today, which in the United States 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 Next: Wedbush Raises Target As It Predicts Cloud Services Will Lift Microsoft Above Wall Street Estimates
See more from Benzinga
Microsoft, Salesforce, Oracle Join Hands To Develop COVID-19 Vaccine Passports
Apple To Bring Music, Podcast To Microsoft Store In 2021: Report
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
