Microsoft has announced that they are raising the prices of their Xbox Live Gold service.

The price  hike would be implemented from November 1 in four markets: USA, Canada, UK and Mexico.

The company is however offering a short period discounted offer for one year upgrades.

Microsoft has not revealed any reasons for this price hike. The timing is very bad as they are set to launch Kinect for Xbox 360 and Windows Phone 7 which are both going to use this service.

Looks like Microsoft is just looking to raise their revenues from their Xbox division which has not been very profitable for them.