In a dramatic U-turn, Microsoft has announced that it will not go ahead with its plan to double the price of Xbox Live Gold memberships. Not only that, but the company simultaneously announced changes that will mean fewer people will need Gold memberships in the first place.

Just hours after the initial price increase was announced, Microsoft withdrew it in response to outrage from fans. 'Today was not a good day,' the company tweeted. 'We always try to do our best for you, but today we missed the mark. We hear you and are rescinding the Xbox Live Gold price renewal."

The price increase seemed like a tone-deaf move in a world where not only are incomes being squeezed, but people are socially distanced due to the Coronavirus and online gaming has become a lifeline for isolated friends and family around the world.

Microsoft seemed to recognize this climate in an accompanying update on the official Xbox news site, adding that "connecting and playing with friends is an important part of gaming, and we have failed to meet the expectations of players who rely on it every day."

In addition to keeping prices the same, Microsoft will actually go even further and eliminate the need for a Gold subscription to play free-to-play base games like "Fortnite," "Rocket League" and "Warframe." The company writes, "We are working hard to deliver this change as soon as possible in the coming months."

This is a positive move, but before we give Microsoft too much credit, it is important to emphasize that this is merely an attempt to put Xbox in the same league as other formats. The Xbox is an exception to the rule, as free games are already exempt from subscribing to online services on the Nintendo DS and PlayStation.

There are also shareholder-friendly reasons why allowing free access to Free-to-Play games is good business. Players may not pay for subscriptions, but these games are funded through optional micropayments, from which the platform holder gets a generous share.

For whatever reason, this is a timely reminder of consumer purchasing power: with Xbox Series X and Xbox Series S hardware still in short supply, Microsoft has decided that it would be ill-advised to have people Googling "Xbox Series X inventory" change their search to "PS5 inventory." It is likely that Microsoft has decided that it is not a good idea to have people googling "Xbox Series X inventory" and change their search to "PS5 inventory". And that's good news for loyal Xbox users who will soon be renewing their Gold subscriptions.

"If you are already an Xbox Live Gold member, your current price will remain the same when you renew. Both new and existing members will enjoy Xbox Live Gold for the same price as they do now." In the US, one month is $9.99, three months is $24.99, six months is $39.99, and 12 months is $59.99."