I'm going to look at this from 2 points of view...
1) From a personal point of view it sucks major ass. Not real happy about it at all. I don't play a lot online, but it's nice to know I have it if & when I do want to play. Plus, it's necessary for my Netflix subscription. I could probably do without Gold for the rest of the services though. For my family it's going to be real expensive, but the current 'lock it down' pricing will ease the pain. The upcoming Family Membership will help a lot too.
According to Kotaku, you'll be able to take existing Gold accounts and upgrade them to the Family subscription. The total value of your combined accounts will determine how much, if any, you'll be required to pay in order to upgrade to the Family Plan. Any credit more than the required $99/yr fee will extend your subscription. So you could go ahead and stack up Gold subscriptions now and upgrade to the Family Plan in November and have enough paid for a family of 4 to last a year or more. I'll definitely be upgrading to the family plan since my son is playing lots of Halo online. The wife is starting to get interested in online gaming too and with Kinect coming I'm sure I'll see her using it more & more.
When you look at it that way, it's a little easier to swallow, but it still pisses me off.
2) From a business/industry point of view, it makes pretty good sense for Microsoft. Xbox Live Gold has morphed into more than just an online multiplayer service. The amount of services they are including now versus what they included back in 2002 for the same $50 is insane. You kind of think they would have bumped it up sooner. Forbes has pretty good blog article on the business end...
http://blogs.forbes.com/oliverchiang/2010/08/30/microsoft-raises-price-for-xbox-live-gold-membership
I think you could make the argument that if Sony hadn't launched PSN+ at $50 we wouldn't be talking about a price hike. Until PSN+ has _feature_ parity with Live Gold I'm sure you're going to keep seeing Microsoft trumpeting the value of all the services you get with a paid subscription. The upcoming ESPN3 and Hulu+ services are a great addition & value for being a member. Even if you looked just at the addition of ESPN3, there's a strong argument to be made that it's definitely worth an extra $10 a _YEAR_.
I agree that a price hike in the middle of this economy is insane, but Microsoft has to make money too. I've been seeing similar complaints at the county courthouse where I work with regards to a few property values going up. The problem where we are is that property values were already under-valued for years. The State just couldn't put off increasing properties values any longer. They're banking on the belief that the economy will only get better from here on out. So they're thinking that after 1 year of complaints, people will forget about it and accept it. And I could say the exact same thing about these Live Gold prices. Come November 2011, I'm sure not many people will be complaining and Microsoft will have just as many if not more subscribers.
The one side of this story that I haven't seen anybody touch on, is what do the publishers think about it? Probably pisses them off too. This might be another reason why we're hearing more & more about
'Project $10' and other ways to get money from all those guys playing lots of MW2 online.
Tommy McClain