Microsoft's leading online service, Xbox Live, is going strong. The network has 25 million users, and according to a Bloomberg story, about half of those are actually paying gold members. Some quick math would show that those paying users generate about $625 million in subscription revenues.
More importantly, however, Bloomberg also notes that Xbox Live for the first time has "probably" exceeded $1 billion in sales over the last fiscal year, and that sales of movie and TV downloads topped subscription fees. This is notable since it shows an increasing shift towards digital, not just in games, but for other forms of entertainment, which Microsoft certainly wants to be a part of as it looks to control the living rooms across the world.
“Xbox Live has helped sell a lot of consoles and created a lot of loyalty,” said Matt Rosoff, an analyst at Directions on Microsoft in Kirkland, Washington. “Everyone has been talking about Microsoft’s inability to innovate, but this is a pretty good example where they have innovated. They timed it just right with this one.”
Not only is Xbox Live bringing in money for Microsoft because of online gaming and movie/TV downloads, but the service is also great for extending the shelf life of triple-A games with map packs and other DLC. “The old playbook of ‘launch and leave’ is a relic of the past,” said Dennis Durkin, Xbox’s chief operating officer. “Today with Xbox Live, it’s now about ‘launch, sustain, retain’ by continually adding new content that enhances the original experience.”
2 Comments
July 7, 2010
“Everyone has been talking about Microsoft’s inability to innovate"
Really? How about these:
-Built in console hard drive(original Xbox)to eliminate the use of memory cards
-One seamless all encompassing online network(Xbox Live)to play all your games under a single user ID
-The full intergration of achievements and gamerscore into every 360 game so that gamers have a way to show off their various gaming acomplishments
-A completely hands-free motion sensing and voice command game controller with Kinect
-Created an all in one console set top box for gaming, social networking, video chatting, watching movies/tv shows and listening to music
-Avatars(just kidding, lol)
Those were just the ones I could think of off the top of my head. All game companies borrow from other companies and Microsoft is no exception. However, saying that they have never innovated(especially in the console space) is just ridiculous.
July 8, 2010
Windows Phone 7 will bring Msoft, Xbox, Bing and Zune back into the game.