I'm always leery of talking economics (because I'm iggerant), but if we've experienced, say, 20% inflation since 2002, that means that a 2010 dollar is worth 20% less than a 2002 dollar, correct? The fact that a 2010 dollar might be worth 1% more than a 2009 dollar is irrelevant. We're still paying Microsoft 20% less effective cash than we were paying them eight years ago. Thus, a price hike is justified, especially considering all the things they've added in 8 years. We pay less, and get more. If you were ok paying 50 then, you should be ok paying 60 now. It's hardly an outrage.

Maybe you're saying that if they didn't hike the price two years ago, it doesn't make sense to do it now, since we've experienced slight deflation? I would disagree with that. If we saw 10% deflation and every sign pointed to a continuation of that trend, then sure. The economy would be doing their "price hike" for them. The deflation we saw was tiny, though, and the economy is recovering, so inflation will soon resume its usual course.

Anyway, I certainly understand if people don't want to pay M$ for X-box live (I don't, myself). I just don't understand why people are getting so upset. What people need to realize is Microsoft didn't raise prices to add on one more service. Rather, they raised prices to keep level with the market, and to make things more palatable, added another service, AND offered current customers the opportunity to purchase years of additional service for even less than they're CURRENTLY paying. Seems downright magnanimous if you ask me.