Is Microsoft Controlling the Pricing on Xbox Live Marketplace?

According to an article in the April Game Informer, Microsoft is pricing publisher’s content. Content and pricing are submitted to Microsoft for approval. From there, Microsoft makes the final decision on what price to charge based on items of perceived similar value that are already on the Live Marketplace. However, Microsoft said that the publishers themselves are the ones making the final decision on pricing.

According to Game Informer’s sources, not only do the publishers not control the pricing, but Microsoft is refusing to let them release free content. Apparently, Microsoft wants their customers to get used to the idea of paying money for Marketplace content. Microsoft denies refusing to let publishers release content for free.

Who are we to believe? I’m betting on the publishers on this one. There isn’t much incentive to lie about such a matter. Again, check out Game Informer’s full article in the April 2007 issue.