"As you can imagine, the costs associated with maintaining a service at that level and making sure all of those features are consistent, we're hitting that quality bar, we're adding the customer service infrastructure necessary, we're accommodating all of the same social features and functionality too, there's a cost. Infrastructure costs, of course." Davison added that the consistency across all "entertainment applications," whether it be games or things like Netflix and Zune -- which Davison reveals usage has doubled among Xbox Live users over the last year -- is a big part of it.
Davison doesn't only address the Xbox Live price increase in the Gama interview, but also addresses this week's launch of Kinect and the Xbox 360's rise as an overall entertainment solution outside of games. Hit the link below to read more.