Microsoft raking in that Xbox Live money
By Dean • Jul 8th, 2010 • Category: Industry News
- Photo: J.VillaretePhoto / Flickr
Bobby Kotick recently expressed his displeasure at contributing a central experience to Xbox Live without seeing any financial payoff from the system. Now that information regarding just how much money Microsoft are making from Xbox Live subscriptions has emerged, we can’t say we blame him.
Over $1 billion in annual revenue
Through piecing different pieces of information, Gamesindustry.biz (free subscription required) has discovered that Microsoft make more than $1.2 billion (£790 million) annually on a combination of Live subscription and downloadable content. Microsoft now have over 25 million XBLA subscribers and more than 50 per cent of these subscribers have a gold subscription – accounting for around $600 million (£395 million). In an interview since, Xbox COO Dennis Durkin revealed that more than half of the total Xbox Live revenue came from digital downloads, adding at least another $600 million (£395 million). That’s a whole host of money we spend on DLC, Xbox Live Arcade games, themes and, shudder, Avatar fashion accessories.
Buy smarter, please?
- Photo: Dan Coulter / Flickr
Most Xbox Live subscription and Xbox Live Arcade points are bought directly online due to the ease of simply punching in a few credit card details and processing a transaction. Savvy gamers have discovered, though, that if you buy Xbox Live subscription cards and if you buy Xbox Live Arcade points from retailers online, you get them for less than the price Microsoft itself charges. Some online retailers even email the vouchers to you instantly, so that you don’t have to wait. It just makes sense and, by the calculations above, Microsoft don’t need anymore of your Xbox Live subscription money, now do they?
Years down the line, even though many gamers are still not happy with having to pay for the XBL subscription, do you think it’s been worth your money? And which titles dominate your gaming time?
Tags for this article: microsoft, Xbox 360, Xbox Live, Xbox Live arcade
