Microsoft has decided to pass on the costs of currency fluctuations to its consumers in Canada and India; this week, the Xbox Live subscription has received a price hike for Canadians and Indians.
The global economy works in mysterious ways. The Canadian Dollar seems to be on its first rising streak after its depressing fall of the past few years; the corporations, however, think this is the right time to adjust their prices.
Sony increased the price of its PlayStation Plus subscription service from C$ 50 to a hefty C$70 on 22nd of September last year. Sony, at the time, stated that the new price “reflects the current market conditions.”
Games – no matter the platform – have also seen an inflation in price over the past few years; AAA titles that used to launch at C$60 are now doing so at C$80.
The same goes for India; the Indian Rupee has failed to keep up against US$, with the exchange rate shooting up to record highs of over ₹70 for a single dollar.
India also made some changes to its tax code recently, putting Microsoft and other foreign service providers under the gambit of an existing domestic tax. These two factors lead to a hike in price for the Office 365 subscription service in India.
Interestingly, the U.K. has faced a similar fate thanks to the uncertainty of Brexit; Microsoft announced a “periodic harmonization” of its prices for several enterprise services in the U.K. in October last year.
Fortunately, the average British consumer has remained guarded against this “harmonization” in the U.K. It’s a surprise that Microsoft hasn’t announced a similar price hike in the U.K., but it’s clear that Microsoft is certainly weighing its options.
Microsoft has finally budged to the pressure of the Canadian and Indian economies.
Microsoft has raised its prices for Xbox Live in Canada by C$10, making it equivalent to Sony’s PlayStation Plus price in Canada.
The yearly subscription will now cost C$70, while the six-month, three-month and one-month subscriptions are C$45, C$30, and C$12, respectively.
Microsoft has almost doubled its prices for Xbox Live in India; the yearly subscription will now cost ₹3999, up from its current price of ₹2240. The monthly subscription, similarly, has gone up from ₹350 to a hefty ₹699.
Microsoft doesn’t sell the six-month or three-month subscriptions for Xbox Live in India.
The 60 Bucks
Xbox Live costs US$60 annually in the United States, but not every country has the purchasing power to support that price.
The new pricing for Canada and India makes Xbox Live more expensive in India than it is in Canada; C$70 equals to about US$53 while ₹3999 is closer to US$59. This is despite India being a developing economy with far weaker purchasing power, compared to Canada or the United States.
That’s how the global economy works; the new price for both regions will be applied after 28th of February. Thankfully, gamers who have a subscription renewal scheduled before that will be charged the existing tariff.