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$100 Premium XBL Membership Forecast

Analyst Michael Pachter suggests MicrosoftĂ­s likely to introduce a new high end Xbox Live subscription option.

Wedbush Morgan analyst Michael Pachter believes Microsoft’s likely to introduce a new $100 premium Xbox Live membership option.

Pachter made the prediction shortly after Microsoft announced plans to increase subscription fees for the online service for the first time since it launched in 2002.

"The extra $10 translates to around $100 - 150 million per year in additional revenue for Microsoft,” he said of the recent price rise in an article on IndustryGamers. “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. If they can get two 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.

Pachter added: "The Xbox 360 can work as a media center, and conceivably could do things like managing a music library. Although Apple and Microsoft aren't the best of friends, I could see Apple letting Xbox Live members manage their iTunes accounts through their 360s, and other such premium services. I'm not the guy to speculate as to what they will offer (for example, I didn't even know ESPN 3 existed before it was announced for the 360), but I'm sure that there are many talented and creative people at Microsoft working on such a plan right now. For all I know, the Platinum plan might include virtual goods credits for various Microsoft games. If members could get specialized Halo armour or weapons worth the extra $40, they might be more willing to sign up, and it doesn't really cost Microsoft anything to offer things like that."

An independent source has also told us that Microsoft’s likely to introduce a premium Xbox Live offering at a higher price point than existing subscription options.