Bloomberg estimates Xbox Live to be worth $1 billion+

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Given the number of users and $50-a-year subscription fee, it's hardly a surprise that Microsoft is pulling in a ton of cash from Xbox Live, but it looks like the service has recently crossed a significant milestone: the $1 billion mark. That's what Bloomberg estimates for the past fiscal year, at least, based on the number of paid users (about 12.5 million), and a recent statement from Microsoft's Dennis Durkin, who said that sales of downloadable content had topped subscription revenue for the first time. That translates to about $600 million from subscription revenue, and at least $600 million from other sales, for a grand total somewhere north of $1.2 billion. Can't really blame Sony for following its lead, can you?

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Source: http://www.engadget.com/2010/07/07/bloomberg-estimates-xbox-live-to-be-worth-1-billion/

Comments

"Bloomberg estimates Xbox Live to be worth $1 billion+" :: Login/Create an Account :: 147 comments

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SovietRussiaPosted:

I think it is worth a whole lot more than that

LyquPosted:

Not surprising at all. I actually would've expected it be more.

Still, that's a lot of money to sit and program all day..

dodgers31Posted:

That doesn't surprise me at all. But think about it. That's crazy. A fricken video game company is worth over a billion dollars.

Gangsta-Posted:

They shoulld make it free they could get more people they dont need all that money.

M1014Posted:

Holy Sh*t, Man They Need Too Make Xbox Live FREE

CandyCanesPosted:

The_Wild_Thing
xADxSlap
OG- They better make Xbox 720 a beast console with that money

Its Worth A Billion Dollars If They Sell It ...


No, they're reporting that's the actual revenue (not net profit) Microsoft earned off of it... $1.2 billion...

"That translates to about $600 million from subscription revenue, and at least $600 million from other sales, for a grand total somewhere north of $1.2 billion."
Means they made 1billion off it

Android_Posted:

They need to fix the glitches with the new dashboard! Especially the beacon crap, if they are making that much money off of us they better be fixing things. I will give them credit for the nice look of the new dashboard.

WilezPosted:

:O $1 Billion.
Thats 1,000,000,000 :O

The_Wild_ThingPosted:

xADxSlap
OG- They better make Xbox 720 a beast console with that money

Its Worth A Billion Dollars If They Sell It ...


No, they're reporting that's the actual revenue (not net profit) Microsoft earned off of it... $1.2 billion...

"That translates to about $600 million from subscription revenue, and at least $600 million from other sales, for a grand total somewhere north of $1.2 billion."

xADxSlapPosted:

OG- They better make Xbox 720 a beast console with that money

Its Worth A Billion Dollars If They Sell It ...