[UPDATE] Microsoft pulled a 180 overnight and announced that it is reversing its planned Xbox Live Gold price increase. The subscription will NOT get more expensive, and free-to-play games are getting unlocked for everyone to play for free without a subscription. In the end, things are actually cheaper overall than before. Sometimes customers' feedback is heeded!

According to industry analyst Daniel Ahmad, the decision to make free-to-play multiplayer truly free was "in the works for months," and the response to the news of the price increase was just a catalyst for announcing it. But this doesn't change the focus Microsoft is going to continue putting on Game Pass. You'll still get Gold included in Game Pass Ultimate. You'll also still get Games With Gold through the service.

Here is Microsoft's statement: