Microsoft Xbox Live revenue estimated to top $1 billion

By on July 8, 2010, 10:41 AM
Microsoft's Xbox Live reportedly closed a record sales year for fiscal 2010, which ended June 30. According to estimates published by Bloomberg recently, the premium gaming service over this last year managed to break the $1 billion dollar mark collectively through subscriptions, movie and TV show sales, and other downloadable content.

Microsoft itself has been mum about specific sales figures, but the math seems about right: the financial news outfit simply multiplied the number of users Microsoft admits paid the annual Xbox Live fee -- about 12.5 million -- by the average price of $50 and came up with $625 million. They then took Xbox chief operating officer Dennis Durkin's remark at E3 that sales of downloadable content topped subscription revenue for the first time and you have a total upwards of $1.25 billion. By comparison, the company is estimated to have raked in $800 million a year earlier from Xbox Live.


With Microsoft making such a hefty sum from their hybrid subscriptions + virtual goods model it's no surprise rival Sony has taken notice and followed suit. Its PlayStation Network service has offered free multiplayer gaming to all console owners since the beginning, but at its E3 press conference last month, the company announced a new subscription plan dubbed PlayStation Plus offering premium content and services for a yearly $50 fee. Online revenue is crucial for both companies because sales of consoles themselves barely make up for the cost of building the hardware.




User Comments: 8

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princeton princeton said:

That picture just reminds me how silly the community of 12 year olds that makes up the xbox live network really is.

Guest said:

I don't think the average user pays the suggested $50. Subscription cards can be found online for around $30 a month.

paynetrain007 said:

wow 12 year olds? yes their are many youngons on the 360 but I guaruntee you that their are just as many on PS network. "look as sony's picture boy of PSP marketing." Fact is Microsoft has always provided the better online experience because since its paid for its kept up much better then Sony.

Relic Relic, TechSpot Chancellor, said:

As guest points out, if you are a gold subscriber you should never be paying full price ($50) as there are so many great deals available for discounted subscription.

EXCellR8 EXCellR8, The Conservative, said:

wow 12 year olds? yes their are many youngons on the 360 but I guaruntee you that their are just as many on PS network. "look as sony's picture boy of PSP marketing." Fact is Microsoft has always provided the better online experience because since its paid for its kept up much better then Sony.

how to spot a 360 fanboy 101...

the 360's online experience is not in any way better than PS3 network. i have both consoles and i canceled my Live acct. long ago. you really think the Live service is better just because you pay for it? i'm willing to bet you've never even used a PS3. sure, i could go on all day about how PS3 online is free but when it comes down to it they are basically the same thing. there's only a few subtle differences and they are not enough to make a valid claim to which is the superior service.

you ever wonder that maybe microsoft charges for 0.1% of their server capacity because they are just greedmongers?

paynetrain007 said:

how to spot a 360 fanboy 101...

the 360's online experience is not in any way better than PS3 network. i have both consoles and i canceled my Live acct. long ago. you really think the Live service is better just because you pay for it? i'm willing to bet you've never even used a PS3. sure, i could go on all day about how PS3 online is free but when it comes down to it they are basically the same thing. there's only a few subtle differences and they are not enough to make a valid claim to which is the superior service.

you ever wonder that maybe microsoft charges for 0.1% of their server capacity because they are just greedmongers?

Ahem!!! well its fairly easy to state why live is better. (yes I have used a PS3) 1. is security. With XBL you don't have to worry very much about people hacking the servers for your favorite game COD4 to make people fly around and have unlimited ammo. 2. Superior online service XBL strives to create deals with its partners to make sure DLC arrives on the XB before any competitor. 3. Netflix (much easier to use on XBL then PS3), ESPN, Zune, Last.FM. 4. you can log in with more then one live account on XBL, sadly you can only log onto PSN with one account at a time... Its not very difficult to see why YOU GET WHAT YOU PAY FOR.

Guest said:

Xbox Gold membership is $50 a year, so the people saying the things for $30 for a month is way more expensive

Relic Relic, TechSpot Chancellor, said:

Guest said:

Xbox Gold membership is $50 a year, so the people saying the things for $30 for a month is way more expensive

He meant a year, which is pretty easy to find online.

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