They have improved the service substantially in 8 years and never raised the cost. Remember spring and fall updates to the blade system? We didn't always have party chat, group invites, etc. They listened to users and have constantly evolved the service twice a year for a few years without asking for an extra dime. It's easy to point to Sony & less so Nintendo and say they are free, but honestly PS3 users have Live subscribers to thank for the bulk of ideas Live put forth over the years for Sony to copy w/o charging their user base a monthly fee for R&D.
[quote name='simmias']Inflation makes no sense when you're talking about technology. In reality, prices come down as the technology advances. Think about your TV, your laptop... even your internet service - what did $40/mo buy you 8 years ago vs. today? Eight years ago it cost MS substantially more money to operate Live than it does today.[/QUOTE]
You don't think that 1 million live users downloading a limited amount of content 8 years ago is significantly lower than the 20 million (number pulled out of my ass) downloading free demos, videos and such on a daily basis? The bandwidth they go through on a daily basis has to be outrageous. MS could subsidize that cost to the the developers, but I think we would see far fewer demos if that were the case.
I do say it is in pretty poor taste/ rare form for MS to brag about the Billions they made on Live last year only to turn around and up the price a couple months later.
[quote name='grap3fruitman']Eight years ago we didn't have a dashboard over-run with ads.
[/QUOTE]
Well no, Live 1.0 (or whatever it is considered on the original xbox) wasn't quite as robust to allow such a thing but the dash was covered with them soon after the 360 launch. There was something on every blade. At least now they are all grouped together in the Spotlight channel and completely avoidable. Complaining about them is silly, IMO, with how unobtrusive they really are.
Personally I hope all the big talkers put their money where their mouth is and cancel and maybe MS will get a clue, but my sneaking suspicion is that this is a case of the vocal minority. I don't like the extra $10 any more than you guys, but an extra $.80 cents a month is not going to break the bank.