Microsoft backtracks on a price hike for Xbox Live Gold

That price hike for online service Xbox Live Gold won't happen after all.

Microsoft is pulling away from an increase in cost of the subscription service following online backlash to the proposed changes.

The tech giant had initially planned to increase the price of a 1-month subscription by $1 to $10.99, while a three-month membership would increase by $5 to $29.99. The plans also would've included a six-month membership option for $59.99, the same price as a current 12-month membership.

In a post late Friday, Microsoft confirmed it will not institute the changes. Instead, they will maintain the current prices for Xbox Live Gold: $9.99 for 1 month, $24.99 for 3 months, $39.99 for 6 months and $59.99 for 12 months.

"We messed up today and you were right to let us know," wrote Microsoft in its statement. "Connecting and playing with friends is a vital part of gaming and we failed to meet the expectations of players who count on it every day. As a result, we have decided not to change Xbox Live Gold pricing."

Microsoft also announced it will no longer require a Gold subscription to play free games such as "Fortnite" online. Gold membership is required to play most online video games on Xbox consoles such as "Call of Duty" or "Halo."

The announced changes lead to backlash on social media, with some users threatening to switch over to rival PlayStation made by Sony.