Xbox Live 'Probably' Made $1Billion in 2010

Fiscal year 2010 that is.

Posted by Staff
Xbox Live 'Probably' Made $1Billion in 2010
Esteemed business journal Bloomberg is reporting that "Xbox Live Sales Probably Topped $1 Billion for the First Time" in its fiscal year 2010. It also points out that 50% of Xbox Live subscribers go gold.

In fact, the basis for the figure is that 50% figures. It quotes an email from Dennis Durkin, COO of Microsoft’s Interactive Entertainment Business: Xbox Live’s transaction business, who threw the following figures into the mix:

- "About half the service’s 25 million users paid an annual fee to play games online... in the year ended June 30th".
- That equates to "about $600 million."

- "Sales of products like movie and TV show downloads topped subscription revenue for the first time."

That said, GamesBrief picked up the figures as well, and earlier. This uses figures from Forbes as follows:

- Microsoft has 25 million Xbox Live members worldwide.

- "56% of those users had upgraded to Gold membership in February 2008, according to the Seattle Pi."

- Forbes writer Oliver Chiang "uses 50% for his calculation, which leads to an estimate of 12.5 million Gold members."

- "At $50 per subscription, that’s $625 million in revenue from Xbox Live Gold subscriptions."

Bloomberg's report follows up with estimates from Sarah Friar, an analyst at Goldman Sachs who "estimates Xbox Live had sales of $1.1 billion in the past fiscal year, up from $800 million a year earlier."

Ker-ching! No wonder Sony is rolling out PSN/PlayStation Plus.
Companies:

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