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From industrygamers.com:
[QUOTE]
This week Microsoft officially announced a $10 increase to the annual Xbox Live Gold subscription. In a special Pachter’s Podium last year, Wedbush Morgan Securities’ Michael Pachter correctly predicted the $10 increase.

As for Xbox Live’s future, the great thing about the $10 increase is that it will enable Microsoft to reinvest in the service to then offer even more enhancements. “The extra $10 translates to around $100 – 150 million per year in additional revenue for Microsoft. I think that they will reinvest at least this much in developing other new applications, and will roll out a premium service with $100 – 200 million worth of enhancements,” Pachter told IndustryGamers. “If they can get 2 million users to switch from the $60 plan to the $100 plan, they’ll make an extra $80 million a year, and can keep investing to try to grow that business.”
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Full Story: industrygamers.com



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