Why Does MS Charge For XBL

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Aidenfury19

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#51 Aidenfury19
Member since 2007 • 2488 Posts

Because they know the same people that happily march along to the Windows hardware cycle will do the same to paying for online multiplayer which is free for almost literally every other genre on almost every other system ever made. Thats why.

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erglesmergle

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#52 erglesmergle
Member since 2009 • 1769 Posts

[QUOTE="The_RedLion"][QUOTE="skrat_01"] I'd call smart business a model that actually has some sort of intelligent idea behind it, instead of something so dated and easy to put in. Live Gold is effective, I won't disagree with you there. It's not smart; there really isn't much intelligence behind the model - if it was a new media style of business model however, not something as easy as a subscription fee, then I would agree. Otherwise you could lump many subscription services in the same category. skrat_01
It's easy to put in and is effective. Your own words. The're no other way to call something like it than smart.

Gamespot could charge every user to post on these boards. That is easy. That isn't smart. There is a huge difference between effective, easy and smart.

I think "wrong" is the right word. You cant deny its smart. You can call it stupid if MS loses a significant percentage of its user base next gen because of this dirty tactic. But right now its working.

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SecretPolice

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#53 SecretPolice
Member since 2007 • 44313 Posts

Because if MS offered that fine, fine fully integrated service for free, Sony & Nintendo market share would be a fraction of what it is now and the D.O.J. would step in saying MS created a monopoly in the VG console business. :twisted:

I'm thinking because 360 gamers are willing to pay for the premium service, oh and the fact ya can't play on line without it. :P

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skrat_01

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#54 skrat_01
Member since 2007 • 33767 Posts
[QUOTE="The_RedLion"]If Gamespot charged very few people would pay for it. Now, let's say a lot of people would pay, then yes, it would be very smart.

Adding a subscription service to any network isn't in a sense 'smart'. As I said effectiveness doesn't equate to intelligence, which is why new business models are at the forefront of digital media, and Microsoft is the only company still pushing subscription fees across game content.
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HavocV3

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#55 HavocV3
Member since 2009 • 8068 Posts

Because they know the same people that happily march along to the Windows hardware cycle will do the same to paying for online multiplayer which is free for almost literally every other genre on almost every other system ever made. Thats why.

Aidenfury19

you mean additions of their Windows software?

that scenario seems pretty fair when you realize they have teams of coders working on that for ~3 years. they pay wages to, possibly hundreds of people without seeing any returns on the program they are making until it goes to retail.

and they do offer great discounts to students. it's not like they never try to promote anything good. for all we know, it might not be affordable to sell their software for $35 like Apple, who sees immediate returns because of their 'hardware premium name'

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The_RedLion

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#56 The_RedLion
Member since 2009 • 1942 Posts
[QUOTE="The_RedLion"]If Gamespot charged very few people would pay for it. Now, let's say a lot of people would pay, then yes, it would be very smart.skrat_01
Adding a subscription service to any network isn't in a sense 'smart'. As I said effectiveness doesn't equate to intelligence, which is why new business models are at the forefront of digital media, and Microsoft is the only company still pushing subscription fees across game content.

How smart a move is measured by how effective it is in comparison to how hard it is to put in. Live is easy to put in and is extremely effective (1,2 Billion revenue with an estimated profit of 65%), it's smart. Very smart.
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skrat_01

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#57 skrat_01
Member since 2007 • 33767 Posts

I think "wrong" is the right word. You cant deny its smart. You can call it stupid if MS loses a significant percentage of its user base next gen because of this dirty tactic. But right now its working.

erglesmergle
Losses and profit don't equal out to intelligence. You can have a dumb business model and still be successful; the smartest thing about Live's business model is Microsoft's ability to make it seem as though there is surface value in it, and stay a step ahead of Sony (who admittedly have caught up across much ground over time). The act of pinning a subscription fee on a network is a very unintelligent way to make money. Oh it sure as hell works, but it certainly isn't something smart.
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The_RedLion

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#58 The_RedLion
Member since 2009 • 1942 Posts
[QUOTE="skrat_01"][QUOTE="erglesmergle"]

I think "wrong" is the right word. You cant deny its smart. You can call it stupid if MS loses a significant percentage of its user base next gen because of this dirty tactic. But right now its working.

Losses and profit don't equal out to intelligence. You can have a dumb business model and still be successful; the smartest thing about Live's business model is Microsoft's ability to make it seem as though there is surface value in it, and stay a step ahead of Sony (who admittedly have caught up across much ground over time). The act of pinning a subscription fee on a network is a very unintelligent way to make money. Oh it sure as hell works, but it certainly isn't something smart.

If it works and it's easy to put in, it's not dumb.
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skrat_01

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#59 skrat_01
Member since 2007 • 33767 Posts
[QUOTE="The_RedLion"]How smart a move is measured by how effective it is in comparison to how hard it is to put in. Live is easy to put in and is extremely effective (1,2 Billion revenue with an estimated profit of 65%), it's smart. Very smart.

and I'll happily call that very cumbersome and dated, but very effective in execution. Not smart.
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skrat_01

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#60 skrat_01
Member since 2007 • 33767 Posts
If it works and it's easy to put in, it's not dumb.The_RedLion
If it separates millions of potential users who you could profit from, diving your own internally developed market - It's certainly not smart.
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The_RedLion

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#61 The_RedLion
Member since 2009 • 1942 Posts
[QUOTE="The_RedLion"]If it works and it's easy to put in, it's not dumb.skrat_01
If it separates millions of potential users who you could profit from, diving your own internally developed market - It's certainly not smart.

Does it? Sales and revenue speak otherwise.
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skrat_01

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#62 skrat_01
Member since 2007 • 33767 Posts
[QUOTE="skrat_01"][QUOTE="The_RedLion"]If it works and it's easy to put in, it's not dumb.The_RedLion
If it separates millions of potential users who you could profit from, diving your own internally developed market - It's certainly not smart.

Does it? Sales and revenue speak otherwise.

Sales and revenue show the effectiveness of the current business model. Otherwise yes it does.
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The_RedLion

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#63 The_RedLion
Member since 2009 • 1942 Posts
[QUOTE="The_RedLion"][QUOTE="skrat_01"]If it separates millions of potential users who you could profit from, diving your own internally developed market - It's certainly not smart.skrat_01
Does it? Sales and revenue speak otherwise.

Sales and revenue show the effectiveness of the current business model. Otherwise yes it does.

See? It's effective. It's easy to put it. There's sales and revenue. It's smart. That's it. Sorry, I have to go, and I think I've made my point solid enough. :)
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skrat_01

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#64 skrat_01
Member since 2007 • 33767 Posts
[QUOTE="The_RedLion"]See? It's effective. It's easy to put it. There's sales and revenue. It's smart. That's it. Sorry, I have to go, and I think I've made my point solid enough. :)

Ah but as I said, effectiveness doesn't necessarily equate to smart ;) Going to have to disagree with you :)
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Aidenfury19

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#65 Aidenfury19
Member since 2007 • 2488 Posts

[QUOTE="Aidenfury19"]

Because they know the same people that happily march along to the Windows hardware cycle will do the same to paying for online multiplayer which is free for almost literally every other genre on almost every other system ever made. Thats why.

HavocV3

you mean additions of their Windows software?

that scenario seems pretty fair when you realize they have teams of coders working on that for ~3 years. they pay wages to, possibly hundreds of people without seeing any returns on the program they are making until it goes to retail.

and they do offer great discounts to students. it's not like they never try to promote anything good. for all we know, it might not be affordable to sell their software for $35 like Apple, who sees immediate returns because of their 'hardware premium name'

Windows is ridiculously overpriced. It takes them a ludicruously short period of time to make in profit whatever they put into coding the next version of Windows, especially since most times these different versions are just marginal upgrades.Heck, ever compared their marketing budget to their R&D budget? If anything, you're paying for their bloated marketing budget.

The only reason they can charge $300+ for the non-OEM versions is because they have the benefit of a monopoly. It's the same deal with XBL, thus the comparison.

You can't honestly tell me that most of those currently paying for Live would do so if they could play online without it. It's forcing people to pay more than the cost of the fricking hardware over the lifespan of a console for something that should be a baseline feature and it's scummy as hell.

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The_RedLion

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#66 The_RedLion
Member since 2009 • 1942 Posts
Ah but as I said, effectiveness doesn't necessarily equate to smart ;)skrat_01
Yeah, and that's all you've said, while I have sales, revenue, profit on my side :P
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skrat_01

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#67 skrat_01
Member since 2007 • 33767 Posts

[QUOTE="skrat_01"]Ah but as I said, effectiveness doesn't necessarily equate to smart ;)The_RedLion
Yeah, and that's all you've said, while I have sales, revenue, profit on my side :P

Oh no I have the success of newer business models, like Valve's own on my side; which is on the more competitive open platform ;):P

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The_RedLion

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#68 The_RedLion
Member since 2009 • 1942 Posts

[QUOTE="The_RedLion"][QUOTE="skrat_01"]Ah but as I said, effectiveness doesn't necessarily equate to smart ;)skrat_01

Yeah, and that's all you've said, while I have sales, revenue, profit on my side :P

Oh no I have the success of newer business models, like Valve's own on my side; which is on the more competitive open platform ;):P

Valve succeeding does not change anything. Valve being smart (or even smarter), does not stop Live from being smart.

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sky_rend

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#69 sky_rend
Member since 2005 • 207 Posts
MS knows the other stuff they add besides multiplayer isn't worth the money they charge. If P2P multiplayer was part of the silver package, they would lose most of the Gold subscribers.
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blitzcloud

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#70 blitzcloud
Member since 2007 • 1229 Posts

Oh skrat, my bad. Thought fuse was the subscription here. Well i meant the plus or total access GS there.

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skrat_01

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#71 skrat_01
Member since 2007 • 33767 Posts

Valve succeeding does not change anything. Valve being smart (or even smarter), does not stop Live from being smart.

The_RedLion
Of course it does, I'll happily proclaim it isn't smart next to a business model like Valve's that isn't dated and doesn't fracture their market and compromise potential profits. If you're at odds sure thing.
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monson21502

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#72 monson21502
Member since 2009 • 8230 Posts

because it was first and by far the best online console gaming system.

steam is for pc gamers. sony has had a chance to force ms to lower or drop the fees but they wanted a share of the online sub pie and offered 2 paying subs to ps3 owners. when none buys psn+ fails to get ppl to pay greedy sony will be forced to charge to play online next gen.....

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hd5870corei7

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#73 hd5870corei7
Member since 2010 • 1612 Posts

14 people trying to justify xD :lol:

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SaltyMeatballs

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#74 SaltyMeatballs
Member since 2009 • 25165 Posts
It prints money.
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xhawk27

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#75 xhawk27
Member since 2010 • 12183 Posts

14 people trying to justify xD :lol:

hd5870corei7

More people tried to justify for PSN plus! :lol:

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loadedboon

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#76 loadedboon
Member since 2004 • 1986 Posts

[QUOTE="hd5870corei7"]

14 people trying to justify xD :lol:

xhawk27

More people tried to justify for PSN plus! :lol:

PSN + is optional and not needed to play your games online. The $60 a year is not optional if you want to play your games online :lol:

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MFDOOM1983

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#77 MFDOOM1983
Member since 2010 • 8465 Posts

[QUOTE="xhawk27"]

[QUOTE="hd5870corei7"]

14 people trying to justify xD :lol:

loadedboon

More people tried to justify for PSN plus! :lol:

PSN + is optional and not needed to play your games online. The $60 a year is not optional if you want to play your games online :lol:

actually it is.

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foxhound_fox

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#78 foxhound_fox
Member since 2005 • 98532 Posts

Because people are willing to pay for it... and justify the cost as "worthwhile."

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loadedboon

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#79 loadedboon
Member since 2004 • 1986 Posts

[QUOTE="loadedboon"]

[QUOTE="xhawk27"]

More people tried to justify for PSN plus! :lol:

MFDOOM1983

PSN + is optional and not needed to play your games online. The $60 a year is not optional if you want to play your games online :lol:

actually it is.

Well have fun playing your games online on the 360 if you don't pay the forced amount of money.

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MFDOOM1983

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#80 MFDOOM1983
Member since 2010 • 8465 Posts

[QUOTE="MFDOOM1983"]

[QUOTE="loadedboon"]

PSN + is optional and not needed to play your games online. The $60 a year is not optional if you want to play your games online :lol:

loadedboon

actually it is.

Well have fun playing your games online on the 360 if you don't pay the forced amount of money.

I've been paying $30 for the past few years and i have tons of free months thanks to MS promotions.:)

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erglesmergle

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#81 erglesmergle
Member since 2009 • 1769 Posts

[QUOTE="The_RedLion"][QUOTE="skrat_01"]Ah but as I said, effectiveness doesn't necessarily equate to smart ;)skrat_01

Yeah, and that's all you've said, while I have sales, revenue, profit on my side :P

Oh no I have the success of newer business models, like Valve's own on my side; which is on the more competitive open platform ;):P

Are you saying smart = honest successful business model? Because honest does not always equal smart.

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washd123

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#82 washd123
Member since 2003 • 3418 Posts

because people pay

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markinthedark

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#83 markinthedark
Member since 2005 • 3676 Posts

because they are able to.

If Sony could do the same, they would be. With the exception of an early google, no large for-profit company has ever cared about anything other than making the most money possible.

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theherooftime1

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#84 theherooftime1
Member since 2005 • 451 Posts
cause of halo
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gamer-adam1

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#85 gamer-adam1
Member since 2008 • 4188 Posts

steam is not a competitor of XBox Live, so they cant be compared its like comparing a boat to a car, xbox live is after PSN and Wiis online...and Xbox live is winning, thats all that matters, PLUS XBox Live isnt even the same as steam.

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Jynxzor

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#86 Jynxzor
Member since 2003 • 9313 Posts
Answer: Because people will take the hit and say "Please sir can I have another" Personally I think Pay to Play access like Xbox Live will eventually be crushed underfoot because of services like Steam being free and being better than what people are paying for. It's just a matter of time before PC and Consoles colide so close together that charging for online will be like standing in two identicle lines, one costs $20.00 to stand in, and the other is $0.00. The only difference is that there is no difference.
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Keiji993

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#87 Keiji993
Member since 2009 • 1059 Posts

[QUOTE="EdenProxy"][QUOTE="CRUSHER88"]It has nothing to do with an army of fanboys. They started charging for XBL back on original Xbox when gamecube and PS2 didn't have a proper online service going. When you manage to get millions of people to pay annually for XBL for the original, why would you bother making it free with the transition into the next generation. CRUSHER88
Why would they be raising the price.

As much as I don't want to say it, why not? They already have millions of people locked into XBL. If people don't care enough to switch over to PS3 or PC for free online gaming at the $50 point, then people won't switch at the $60 point. I know I still pay for XBL because all my friends have an Xbox and XBL. Also, XBL in Canada has been $60 for a while now.

Thats why they will continue to charge for online + their making a billion a year from it.

The problem is if other companies realize how much more money they could make everyone will charge for online too. Also Microsoft might try to keep raising the price if the profit is higher or the same.

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XanderZane

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#88 XanderZane
Member since 2006 • 5174 Posts

The poll got glitched yesterday so I made a new one. Is XBL $50 (soon to be $60) material or just a way for MS to cash in.

erglesmergle
Both answers above are correct. I wish I could have clicked them both. Microsoft uses the money to expand the server and provide a LOT more content then what PSN or Steam has to offer. Does STEAM have movies, Netflix, Facebook, Tweeter, FM.com, a GameRoom, Demos for every XBLA game and all the hottest new titles?. Does it do acheivements and keep track of leaderboards and stats for most of their games? PSN is getting there, but it still doesn't have the huge amount of content that XBL has. Soon, you won't even need a controller to navigate it.
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gamer-adam1

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#89 gamer-adam1
Member since 2008 • 4188 Posts

Answer: Because people will take the hit and say "Please sir can I have another" Personally I think Pay to Play access like Xbox Live will eventually be crushed underfoot because of services like Steam being free and being better than what people are paying for. It's just a matter of time before PC and Consoles colide so close together that charging for online will be like standing in two identicle lines, one costs $20.00 to stand in, and the other is $0.00. The only difference is that there is no difference.Jynxzor

I see a future where Steam isnt free, few websites are free, prices go up for everything. mostly because people will demand more and more, thus why Facebook, Youtube, Hulu, Addictinggames, Ign, Sports sites and more have a price option...I said youtube because they are charging for movies soon.

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heretrix

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#90 heretrix
Member since 2004 • 37881 Posts

Why do designers charge more for their clothes?

Why do they charge for bottled water?

Why does Sony make expensive TV sets?

Why does Apple charge what they charge for their macs?

It's business. You don't like the price you go somewhere else. You aren't always going to like what someone charges for their goods. There's no sense being immature about it.

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The_RedLion

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#91 The_RedLion
Member since 2009 • 1942 Posts
[QUOTE="skrat_01"][QUOTE="The_RedLion"]

Valve succeeding does not change anything. Valve being smart (or even smarter), does not stop Live from being smart.

Of course it does, I'll happily proclaim it isn't smart next to a business model like Valve's that isn't dated and doesn't fracture their market and compromise potential profits. If you're at odds sure thing.

Not it does not. Two business moves can be smart. One being smarter does not stop the other from being smart, too. The argument of "it's not smart because I think Valve's smarter" is way too forced to be valid.
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Keiji993

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#92 Keiji993
Member since 2009 • 1059 Posts

Why do designers charge more for their clothes?

Why do they charge for bottled water?

Why does Sony make expensive TV sets?

Why does Apple charge what they charge for their macs?

It's business. You don't like the price you go somewhere else. You aren't always going to like what someone charges for their goods. There's no sense being immature about it.

heretrix

Business = getting ripped off?

You have to have XBL Gold to have full access for the rest of the game, which has probably the most replay value.

They need to include online on XBL Silver and its almost 2011 and every other gaming system has free online gaming.

This is your logic: "I just bought a box of pizza but i have to pay per slice" < That's proper business right?

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Santesyu

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#93 Santesyu
Member since 2008 • 4451 Posts

I agree with the poll because people will pay for it MS knows this. Wish sony would try something like this and force everyone to pay the only reason they havne't done so is becaus they know there fanbase aint gonna go for that. MS fanbase seem loyal to the teeth which aint bad. Sony fanbase seem like if you something critical they will disown you.

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deactivated-63f6895020e66

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#94 deactivated-63f6895020e66
Member since 2004 • 21177 Posts
Because they want to. As easy as that.
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heretrix

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#95 heretrix
Member since 2004 • 37881 Posts

[QUOTE="heretrix"]

Why do designers charge more for their clothes?

Why do they charge for bottled water?

Why does Sony make expensive TV sets?

Why does Apple charge what they charge for their macs?

It's business. You don't like the price you go somewhere else. You aren't always going to like what someone charges for their goods. There's no sense being immature about it.

Keiji993

Business = getting ripped off?

You have to have XBL Gold to have full access for the rest of the game, which has probably the most replay value.

They need to include online on XBL Silver and its almost 2011 and every other gaming system has free online gaming.

This is your logic: "I just bought a box of pizza but i have to pay per slice" < That's proper business right?

You have the option to not deal with that BS. You can whine about getting ripped off but how is that possible if you are not buying it? The fact that there are other options available even's it all out.

You have just proven you don't know a damn thing about my logic. My logic is "I don't like it I won't spend my cash on it" You can charge me 100 dollars a minute for internet access, as it is your right to charge whatever you want for your product, but i sure as hell ain't gonna buy it. But I'm not gonna cry about it either. I'll just laugh in your face and tell you to go to hell.

For example, I know lots of people who spend upwards to 80 bucks for a designer T-shirt. Are you telling me that just because there are cheaper T-shirts out there that the designer doesn't have a right to sell their shirts and that they should be cheaper because you might want one?

That's incredibly silly. Just don't buy the shirt.

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KHAndAnime

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#96 KHAndAnime
Member since 2009 • 17565 Posts
Because Microsoft wants money. You're lucky they don't charge $100. Only $8 per month. It'd so cheap!
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TBoogy

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#97 TBoogy
Member since 2007 • 4382 Posts
Because XBL fans want a great service. Hulu Plus on PS3 is exclusive through the end of the year IF you subscribe to the enhanced PSN plan. Effectively making PSN the same cost as LIVE. This year, it's Hulu. Next year you will need to pay to access some other limited-time offer. So if I had a playstation, I'd be paying just as much. And still have lesser quality...
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Aidenfury19

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#98 Aidenfury19
Member since 2007 • 2488 Posts

Because XBL fans want a great service. Hulu Plus on PS3 is exclusive through the end of the year IF you subscribe to the enhanced PSN plan. Effectively making PSN the same cost as LIVE. This year, it's Hulu. Next year you will need to pay to access some other limited-time offer. So if I had a playstation, I'd be paying just as much. And still have lesser quality...TBoogy

Considering Hulu Plus itself is a paid service (for $10 a month) Sony is actually saving you a good deal there, assuming you're interested in it. That isn't counting all the freebies and discounts. If you're the type of person who PSN Plus appeals to, chances are pretty good you're actually saving money by subscribing to it.

The same really can't be said for XBL Gold.

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clone01

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#99 clone01
Member since 2003 • 29827 Posts

To make money...doy!

dommeus
bingo. fans of the service will pay.
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alexside1

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#100 alexside1
Member since 2006 • 4412 Posts
When the demand is high, people will pay. It's called a business son. Just because X dose it, doesn't mean that every company dose it.