Xbox Live generated over $1 billion last year

[Guild McCommunist]

Microsoft has revealed that half of the 25 million Xbox Live users accounted for in the past fiscal year (ending June 30) are Gold subscribers, putting revenue from Gold subscriptions alone at $600 million for the last year. Add in revenue generated by sales of DLC, movies, and TV shows, and it looks like Xbox Live revenue topped a whopping $1 billion in a single fiscal year for the first time ever.

As Bloomberg reports, Microsoft says that sales of DLC, movies, and TV shows exceeded the revenue brought in from subscriptions for the first time this year. So if that subscription revenue totaled around $600 million, then it sounds like Xbox Live revenue in total must have topped the $1.2 billion mark.

All this number crunching is necessary since Microsoft doesn't release detailed sales and revenue figures for Xbox Live. Still, Bloomberg reports Goldman Sachs analyst Sarah Frier put her own estimate for Xbox Live revenue this past fiscal year at $1.1 billion, far exceeding the $800 million she estimated for the prior year.

With Microsoft making such a hefty sum from their online network, it's no surprise some third parties are becoming increasingly more vocal about revenue sharing. Just earlier this week, Activision CEO Bobby Kotick claimed to the Financial Times that 60 percent of Xbox Live users were there "principally because of Call of Duty," and Activision isn't seeing a fair share of the revenue.

Source

One of the reasons Microsoft isn't in the pissing contest between Nintendo and Sony is right here.

 

[Blaze163]

I'm not a Gold user. It's not like the fee is too expensive, but I disagree with it on principle. I fail to see why there should be a charge at all, given that every other console known to man has it either free or optional bonus stuff like Playstation Plus if you pay. If you could play games online with a Silver grade account, it'd be sweet. But as I understand it you have to have Gold membership, right?

 

[monkat]

I always thought the "pissing contest" was between sony and ms this gen...with ninty all alone in their bathtubs of money

 

[Guild McCommunist]

I always thought the "pissing contest" was between sony and ms this gen...with ninty all alone in their bathtubs of money

It was until Sony made the Slim and started really going towards the casual market. They launched an entirely new ad campaign and pretty much completely started the family-friendly push. I mean, Microsoft has started doing that a bit with some lame "family" bundles and Kinect, but otherwise Sony and Microsoft haven't really been spatting at each other.

 

[754boy]

I'm not a Gold user. It's not like the fee is too expensive, but I disagree with it on principle. I fail to see why there should be a charge at all, given that every other console known to man has it either free or optional bonus stuff like Playstation Plus if you pay. If you could play games online with a Silver grade account, it'd be sweet. But as I understand it you have to have Gold membership, right?

Seeing as though I get all my games for nothing, I don't mind at all paying for live. I have both PSN and XBL accounts and Live ia a better overall experience. Why? Well, you get what you pay for. Sony sees M$ making all this money so they whip up PSN Plus to try and cash in too. But, since they already giving away what most games want for free, online gaming, most people don't give a shit about it. I know I don't lol.

 

[Blaze163]

I might start paying for Playstation Plus if it starts offering decent free stuff. Most of what's free at the moment sucks ass. At one point there was a rumour going around that PS+ users get as many PS1 Classics as they like, free of charge. Gimme that sort of service and we'll talk. But Live in my experience is the worse of the two services. I've played MW2 on both systems and I found the 360 version to be full of racist pricks. At least the PSN games were relatively prat free.

 

[Chibz]

I don't think it's that big of a deal. It's just a couple of bucks a month. It could be worse.

 

[Blaze163]

I don't think it's that big of a deal. It's just a couple of bucks a month. It could be worse.

There's a good reason why I pirate what I can and buy new games sparingly. I'm poor. Live seems like an unnecessary expenditure to me, especially when PSN is free.

 

[purplesludge]

Just earlier this week, Activision CEO Bobby Kotick claimed to the Financial Times that 60 percent of Xbox Live users were there "principally because of Call of Duty," and Activision isn't seeing a fair share of the revenue.

lol How would you even figure something like that up.

 

[Guild McCommunist]

Just earlier this week, Activision CEO Bobby Kotick claimed to the Financial Times that 60 percent of Xbox Live users were there "principally because of Call of Duty," and Activision isn't seeing a fair share of the revenue.

lol How would you even figure something like that up.

I think it's a complete dickhead statement but I do know a fair amount of people who buy a Xbox, pay for a Gold subscription, and really do nothing but play Call of Duty. If you're smart though you'll take advantage of the deals on XBLA titles or just use it to play a variety of games that aren't CoD. Hell, the game I play most on my Xbox and on Live is Left 4 Dead 2.

 

[Thoob]

...and Sony made $0 from PSN last year.

 

[monkat]

...and Sony made $0 from PSN last year.

They don't have any first-party DLC?

 

[Splych]

Just earlier this week, Activision CEO Bobby Kotick claimed to the Financial Times that 60 percent of Xbox Live users were there "principally because of Call of Duty," and Activision isn't seeing a fair share of the revenue.

lol How would you even figure something like that up.

I think it's a complete dickhead statement but I do know a fair amount of people who buy a Xbox, pay for a Gold subscription, and really do nothing but play Call of Duty. If you're smart though you'll take advantage of the deals on XBLA titles or just use it to play a variety of games that aren't CoD. Hell, the game I play most on my Xbox and on Live is Left 4 Dead 2.

sounds like me.
but from hearing that statement from Activision,

i am gonna save up for BC2, Red Dead Redemption and Castle Crashers/MS points.

 

[Bladexdsl]

One of the reasons Microsoft isn't in the pissing contest between Nintendo and Sony is right here.

and also the only thing keeping the 360 alive

 

[purplesludge]

One of the reasons Microsoft isn't in the pissing contest between Nintendo and Sony is right here.
and also the only thing keeping the 360 alive

QUOTE

As Bloomberg reports, Microsoft says that sales of DLC, movies, and TV shows exceeded the revenue brought in from subscriptions for the first time this year.

Except for all the games and stuff people buy.

 

[BlackDave]

Both me and my sister were gold users until June. I just don't see any reason to have gold anymore.

 

[Bladexdsl]

Except for all the games and stuff people buy.

you mean halo?

 

[Urza]

I don't think it's that big of a deal. It's just a couple of bucks a month. It could be worse.

There's a good reason why I pirate what I can and buy new games sparingly. I'm poor. Live seems like an unnecessary expenditure to me, especially when PSN is free.

QUOTE(Blaze163 @ Jul 7 2010, 10:02 AM)

I'm not a Gold user. It's not like the fee is too expensive, but I disagree with it on principle.

 

[Guild McCommunist]

Except for all the games and stuff people buy.

you mean halo?

Forget it, every thread you go into you know absolutely nothing outside of your terrible fanboy logic. There's no point arguing with you and your childlike knowledge of today's current generation of consoles.

 

[Bladexdsl]

so you deny that 98% of the games on the 360 aren't' multiplat?