XBox Live or PlayStation Network, The Facts

PSN or XBL

Recent reports are listing the Xbox Live Gold account currently priced at $50, will increase 100%.    If speculation is correct and the price tag for an annual subscription will be $100, What extra benefits will be made available to Xbox Live Gold accounts?  With the PlayStation Network offering a free service, why would anyone pay that amount?  Let the debate begin…

Xbox Live

The Xbox 360 will soon be getting a new Face-lift, by way of a Fall update.  Within that update gamers will able to use their Xbox Live accounts to communicate through Twitter and Facebook respectively.  Last.fm will also be bundled in.  But do these services demand a price hike?  Many believe Xbox Live offers a better online experience over the PSN.  How so? Easier to invite friends into game sessions.  Cross-game chat.  And an easier to view lists of news, updates and games.  The recently announced 1080p stream has some people questioning a Blu-ray player.  But many have noticed the fluctuation on “What’s New” advertising.  The result — paying for ad-filled services.  Worth the price?

PSN

The PlayStation Network offers many of the options XBL can.  Chatting with friends within a game is currently possible.  It was announced that the cross-game chat function would be available through a future firmware update.  Sure, HOME isn’t what it’s meant to be but developers have been working hard and as of late we’ve seen more games getting their own place in the HOME World.  Ads are minimized but exist, especially in HOME.  Online browsing is also possible.  Movie streams are offered in 1080p.  For the amount of content and services listed, the PSN price of Free outweighs XBL of $50 and even more at $100.

Console Price Drops

Sony made a huge announcement when they dropped the price of their PS3 to $299 back in August 2009.  Raising the bar of competitive prices for consumers.  The PS3 saw a sharp increase in sales and the amount of PSN user’s have increased.  A move that Sony, a major force in Marketing, will benefit from advertising revenues.  Sony will continue to push other services to developers in order to keep the “upfront” cost down to us, the buyer.  We’ve all seen in-game advertising and expect to continue seeing them.

Microsoft “unbeknownst” to them had planned a price drop of the 360 before Sony’s PS3.  Whether we it’s true may be fact but for now it’s unknown.  What is known is Microsoft reduced the price of the Xbox 360 to $249, a price drop of $50.  To stay competitive with console sales, Microsoft’s latest move will come out of another budget.  The existing gamer.  The price drop is attrative “upfront” but the final price including the $100 Xbox Live Gold account counteracts that.

But just how much of that revenue comes from Gold subscriptions? Let’s look at 2008: Microsoft said in January that it had 17 million Xbox Live subscribers. Recently, information has come out that a little over half of those users (something around 60%) have gold subscriptions. That gives us roughly 9.5 gold subscribers for 2008. Multiply that by the $50 each of them pay to keep their Gold subscriptions and you get a grand total of $475 million.

We’re in a world where people will pay for what they want. This brings me back to the Blu-ray vs HD-DVD battle where I mentioned people will pay for quality nowadays.  Sony may have messed up with Betamax, but at that time cost was a bigger factor.  So it’s ironic that Sony is the lesser of pricing evil.  With all that the PSN has to offer; movie library, PSP digital games, video streaming, (upcoming) in-game chat, PS Home and the ability to download PSN titles on other consoles to share, the Xbox 360 better shape up.  Lastly, wouldn’t you rather purchase an item for $9.99 than 1200 Microsoft points? If it’s Free, it’s for me!

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Readers Comments (8)

  1. x---EVIL_OSCaR-_ April 22, 2012 @ 8:56 pm

    By the way

    X—EVIL_OSCaR-_

    is my PSN account if you wanna add me! xD

  2. This review is incredibly biased towards PSN. And yes, everything does cost money, because hardly anything in life is free, and it costs money to create, update and run the on-line service. And with the extra $475 million in their pocket, Xbox has a better financial back-up to fund new projects, such as future updates, more expansion, and even a next generation console, that is bound to come within the next 1 and a 1/2 to 3 years.

  3. I just got a PS VITA its awsome good HD graphics very awsome 3D touch screen and pad are outstanding it has lots of awsome stuff theres one bad thing the camera’s aren’t that good but it still kicks ass especially with remote play and 2 dual analog stick’s way to go PlayStation (R)

  4. PS3 in my opinion is better and yes. PS3 did go down but who gives a f**k! They got it back up.. Didnt They?! YES! So Shut The F**k Up!

  5. sorry to post this but your article blows ive had a playstation before and the online experience blows compared to the xbox live network, yeah granted you have to pay for online service but the reason for that is the dedicated servers the only time the servers shut down is when microsoft distributes an update for the console. the xbox’s interface and online experience is way better, and the servers on psn are just completly trash.!!!!!! what company such as the big time sony has their servers hacked by some random hackers??? you need to be updated on your experience instead of listening to rumors dude!

  6. STOP BEING CHEAP. YOUR MAKING $9.99 LOOK LIKE $999. XBOX IS BETTER. PS MAY HAVE BETTER GRAPHICS BUT XBOX STILL ROCKS.LIKE THE KINECT. PSN HAS MOVE BUT ITS PRETTY MUCH WII.

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  8. Yep same code but let me buy a film???

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