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Forums - Microsoft Discussion - So Microsoft made a billion dollars on XBL marketplace?

seece said:
Fumanchu said:

@Seece

Then what you're suggesting is that they've made ~$1.5-2 billion in subscription fees and on top of that an extra billion just on content downloads?

I don't think their financial statements reflect this? Maybe they are selling the hardware at a loss then.

 

Its better than you suggesting that in the last 6 years all the live subscriptions and content download only amounts to 1 billion isn't it?

 

Infamy is right - MS doesn't get the full $50ea. for premium subscriptions, but even still the combined 6 years totals would surely topple the 1 billion mark...I think it's better to suggest that 'majority' is inaccurate.

 



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Fumanchu said:
seece said:
Fumanchu said:

@Seece

Then what you're suggesting is that they've made ~$1.5-2 billion in subscription fees and on top of that an extra billion just on content downloads?

I don't think their financial statements reflect this? Maybe they are selling the hardware at a loss then.

 

Its better than you suggesting that in the last 6 years all the live subscriptions and content download only amounts to 1 billion isn't it?

 

Infamy is right - MS doesn't get the full $50ea. for premium subscriptions, but even still the combined 6 years totals would surely topple the 1 billion mark...I think it's better to suggest that 'majority' is inaccurate.

 

 

Of course you do



 

Lets just put this in perspective, and I'm going to do my adding out here so I don't get it wrong

1 XLB subscriber (lets say $25)

100 XLB S = $2500

10,000 XBL S = $250,000

1 Million XBL S = $250 million

Right? I mean without costs and such?

Lets say he only 4 of those 17 million Online users pay this $25 a year.

Thats a billion right there ....



 

Maybe you're right - maybe they have made $3 billion on LIVE so far (subscriptions + content). I guess the expenditures on the division could soak these up against manufacturing, logistics, labour, parts, maintenance etc. I guess I thought that their profits in their quarterly statements would be higher should they have amassed such a figure.




Fumanchu said:
Maybe you're right - maybe they have made $3 billion on LIVE so far (subscriptions + content). I guess the expenditures on the division could soak these up against manufacturing, logistics, labour, parts, maintenance etc. I guess I thought that their profits in their quarterly statements would be higher should they have amassed such a figure.


 

I honestly don't know where the money goes, safe to say though it is helping Microsoft a lot.

From this year on XBL can make Microsoft $3 billion + a year.

All those subscribers from 2006/2007 would have likely upgraded this new year. (most get their subscriptions around christmas)

AND thats the $25. I live in England and those cards can't be found everywhere, so I just pay mine through the Xbox for full price £39.99 a year.



 

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seece said:

Lets just put this in perspective, and I'm going to do my adding out here so I don't get it wrong

1 XLB subscriber (lets say $25)

100 XLB S = $2500

10,000 XBL S = $250,000

1 Million XBL S = $250 million $25 million

Right? I mean without costs and such?

Lets say he only 4 of those 17 million Online users pay this $25 a year.

Thats a billion right there ... 100 million right there.

You got your adding out wrong. But still either the majority comment is wrong or they've made much more than 1 billion dollars. I could be grossly underestimating their expenses though - the inital setup infrastructure fee would be pretty hefty i imagine - plus they haven't been making money on the hardware this whole time.



revenue =/= profit. a bunch of that money went to the people who developed the games, and some went to infrastructure. The phrase 'made a billion dollars' implies profit



Fumanchu said:
seece said:

Lets just put this in perspective, and I'm going to do my adding out here so I don't get it wrong

1 XLB subscriber (lets say $25)

100 XLB S = $2500

10,000 XBL S = $250,000

1 Million XBL S = $250 million $25 million

Right? I mean without costs and such?

Lets say he only 4 of those 17 million Online users pay this $25 a year.

Thats a billion right there ...   100 million right there.

You got your adding out wrong.  But still either the majority comment is wrong or they've made much more than 1 billion dollars.

 

God I should proof read more, well now maybe you're right .. 100 mill isn't that much.

 

Kind of makes sense actually, thinking about it if Microsoft was making Billions on live then it would be noticeable in their financials.

 



 

Seems like he's talking content download, not membership fees...the math adds to ALOT more than $1 bln in fee alone!



"...You can't kill ideas with a sword, and you can't sink belief structures with a broadside. You defeat them by making them change..."

- From By Schism Rent Asunder

I'm thinking they mean $1b profit, it makes more sense



Never argue with idiots
They bring you down to their level and then beat you with experience