In a posting on Major Nelson’s blog today, Microsoft announced that they hate you, and that your loyalty to them means lees than nothing.  The company's representatives might describe it as a slight price increase in their Xbox Live, but gamers around the world are certain to call it an insulting punch in the balls.  Truth is, it’s probably somewhere in-between.

As of November 1, 2010, Xbox Live Gold members will have to pay a bit more for their online gaming and entertainment service.  In the US, one month memberships will increase from $7.99 to $9.99, three month plans will go from $19.99 to $24.99, and a full year of XBL will run $59.99, instead of $49.99.  British, Canadian, and Mexican gamers will experience similar price increases.  The post also provides a link for players to renew their memberships now at a discounted rate, which is actually $10 cheaper than the current price.

Nelson defends the move, saying that “Since launching Xbox LIVE in 2002 we have continually added more content and entertainment experiences for our members, while keeping the price the same. We’re confident that when the new pricing takes effect, an Xbox LIVE Gold membership will continue to offer the best value in the industry.”  While it’s true that Xbox Live is a much more robust platform than it was in 2002, many of the new features (Netflix, Last.FM, ESPN) carry their own monthly fees.  That means that we’re paying at least $10 more per year for features that have been a part of the service for years, now, like cross-game chat, and services like Twitter and Facebook, that very few gamers take advantage of.  Of course, $60 a year is still pretty cheap; $5 a month isn’t much.  When you compare it to online MMO subscriptions, which usually run around $15 a month for a single game, the ability to play thousands of games online for a third of the price is pretty enticing.  Compare it to Sony’s free service, which offers only slightly less functionality, however, and it’s starting to lose its appeal.

With Sony closing the gap between its sales and those of the 360, this seems like an especially inopportune time for Microsoft to raise their rates.  Presumably, it’s a response to Sony’s addition of the PlayStation Plus program, or at least a planned move that was given the green light after Sony’s decision to add a premium tier to their online service.  Gamers are, without a doubt, going to be upset about this move.  Time will tell, however, whether or not that anger will be reflected in dropped memberships.