MS makes $1.2bn revenue annually from Xbox Live

"Xbox chief operating officer Dennis Durkin has revealed that more than half of Xbox Live's revenue comes from downloadable content,GamesIndustry.biz reports.

Microsoft has previously said that around half the 25 million people on Xbox Live are Gold subscribers, which amounts to around $600m in fees a year.

Therefore, if downloadable content - avatar clothing, game content, films, Live Arcade games, etc. - exceeds that figure then total revenue for Xbox Live must be $1.2bn or higher.

Given that, it's no wonder Sony's now offering a premium subscription service on PlayStation Network.

Microsoft reports its 2010 fiscal results later this month."

http://www.eurogamer.net/articles/you-spend-USD1-2bn-annually-on-xbox-live

Wow. that's some juicy apples!!

Yeah, that explains why Sony made PSN+

Yeah, that explains why Sony made PSN+

siddhu33

I dont think PSN+ could beat live to tbh

I'm glad they give back to their subscribers by supplying them with more stuff to buy for a limited time exclusively on 360.

Good for Microsoft I guess.

An analyst from Goldman Sachs estimated that the margin on the Live service is around 65%... so it does lead one to wonder what they do with the ~$400 million it generates?

Maybe it went into Kinect.

Good for them I suppose.

But Dear Microsoft, could you use that money to release couple exclusive core games?

I wonder how much of that is used to actually improve XBL?W1NGMAN-

I knew whole xbox live (Fee, themes, dlc, gamerpics and whatnot) was ripoff.

As customer who have had xbox live gold 2 years. It hasn't offer me anything that my pc can't do (for free). But to play with my friends I have to waste 40 euro a year :|

Lemmings say gold discounts? Hahah, they are normal gaming discounts. Just look at steam, and shut up.

But when you put money glasses on. Nice M$ 8)

Good for Microsoft I guess.

An analyst from Goldman Sachs estimated that the margin on the Live service is around 65%... so it does lead one to wonder what they do with the ~$400 million it generates?

Maybe it went into Kinect.

shinrabanshou

I wonder how much of that is used to actually improve XBL?W1NGMAN-

It could be being invested into the games division etc. Or it very well could be going into dividends, executive performance bonuses, non-related R&D or other costs.

[QUOTE="W1NGMAN-"]I wonder how much of that is used to actually improve XBL?shinrabanshou

Good for them I suppose.

But Dear Microsoft, could you use that money to release couple exclusive core games?

I wonder how much of that is used to actually improve XBL?W1NGMAN-

[QUOTE="W1NGMAN-"]I wonder how much of that is used to actually improve XBL?zidan4000

[QUOTE="W1NGMAN-"]I wonder how much of that is used to actually improve XBL?zidan4000

pppff greedy MS... been contributing for the past 2 1/2yrs and didnt receive one damn thank you card :(

"Xbox chief operating officer Dennis Durkin has revealed that more than half of Xbox Live's revenue comes from downloadable content,GamesIndustry.biz reports.

Microsoft has previously said that around half the 25 million people on Xbox Live are Gold subscribers, which amounts to around $600m in fees a year.

Therefore, if downloadable content - avatar clothing, game content, films, Live Arcade games, etc. - exceeds that figure then total revenue for Xbox Live must be $1.2bn or higher.

Given that, it's no wonder Sony's now offering a premium subscription service on PlayStation Network.

Microsoft reports its 2010 fiscal results later this month."

http://www.eurogamer.net/articles/you-spend-USD1-2bn-annually-on-xbox-live

Wow. that's some juicy apples!!

[QUOTE="siddhu33"]

Yeah, that explains why Sony made PSN+

I dont think PSN+ could beat live to tbh

XBOX LIVE is a beast. everybody in gaming who isnt in denial knows this.

i love how everyone ( cows ) keeps saying PS3 has turned a corner, Xbox is doomed, PS3 is catching up, PSN+ Will crush Live and so forth.

then i just sit back and laugh hysterically because each year Microsoft keeps raking in BILLIONS off of Xbox 360 sales/ Software and Live.

now even Activisions Bobby Kotick is bowing down to Xbox lives revenue generating power.

good effort Sony, but try again Next generation guys.

Over $1 Billion a year. Very impressive.KittenWishes

XBOX LIVE is a beast. everybody in gaming who isnt in denial knows this.

i love how everyone ( cows ) keeps saying PS3 has turned a corner, Xbox is doomed, PS3 is catching up, PSN+ Will crush Live and so forth.

then i just sit back and laugh hysterically because each year Microsoft keeps raking in BILLIONS off of Xbox 360 sales/ Software and Live.

now even Activisions Bobby Kotick is bowing down to Xbox lives revenue generating power.

good effort Sony, but try again Next generation guys.

bryn8150

[QUOTE="W1NGMAN-"]I wonder how much of that is used to actually improve XBL?zidan4000

Now they just need to donate a small portion of that, to me, yearly. So I can be rich.

Good for Microsoft I guess.

An analyst from Goldman Sachs estimated that the margin on the Live service is around 65%... so it does lead one to wonder what they do with the ~$400 million it generates?

Maybe it went into Kinect.

shinrabanshou

On the surface, part of it is going to their infrastructure.

Or it could have gone to brokering partnerships like they did with companies like Facebook, Twitter and Last.fm or more recently Hulu. Or it could have gone to the Activition deal for timed exclusivity on all CoD add-ons for a few years.

Perhaps it's going into R&D for upcoming features we haven't even heard about? Or the personnel that enforce policy, like Stepto and his team....or all the work they do across all regions globally, and the special interest groups that they work with. Maybe it goes to the PlaySmart program that's educating parents and legislators about online gaming. Or to the Community developer program that helps fan sites with the Xbox Live widgets. Maybe it goes to the people that set up all the community events.

Yeah, that explains why Sony made PSN+

siddhu33

XBOX LIVE is a beast. everybody in gaming who isnt in denial knows this.

i love how everyone ( cows ) keeps saying PS3 has turned a corner, Xbox is doomed, PS3 is catching up, PSN+ Will crush Live and so forth.

then i just sit back and laugh hysterically because each year Microsoft keeps raking in BILLIONS off of Xbox 360 sales/ Software and Live.

now even Activisions Bobby Kotick is bowing down to Xbox lives revenue generating power.

good effort Sony, but try again Next generation guys.

bryn8150

its mediocre just look at steam it prances round XBL and gives it a massive middle finger.Steam is leagues ahead of both in terms of sheer content and community features.Why should i pay to play on A P2P NETWORK as very few support dedi's,i mean i can see why people justify wow sub fee's cause those are pretty much used for keeping that massive and i mean massive server farm ticking over.

I just dont get why people lap upthis culture, to me its absurd but i have been playing online gratis since roughly 2003 using PC and now PSN would i pay for services i can get elsewhere and just as good and in the case of pc sometimes better why on earth would i pay?

[QUOTE="skrat_01"]Yes MS Gold subscribers. Paying for 'a service'. No. Step 1 lock out game content. Step 2 force users to pay a subscription for it. Profit.Ravensmash

Yes but they are built around the service because MS requires it, thus MS is the ppl locking you out.

If more than half comes from DLC, get rid of the subscription fee already. More people will get online on the xbox if they don't have to pay $50 a year. Ninja-Hippo

[QUOTE="Ninja-Hippo"]If more than half comes from DLC, get rid of the subscription fee already. More people will get online on the xbox if they don't have to pay $50 a year. racing1750

Yeah, that explains why Sony made PSN+

siddhu33