Excellent insight to XBLA.
No question XBox Live is successful. I personally have 35 games from it... And look forward to new releases every Wednesday.
Microsoft needs to market it better though. This is one of the ways they can get the casual gamer as most of these games are of the "Pick up and Play" variety. And they need to encourage more companies to make new content for XBLA rather then just converting existing stuff. Like Sierra is doing with Switchball...
I can see why people want the Live service for free, but I think as time goes on you will find that all the console vendors will have to charge a fee (or spam you with advertising all the time) for use if they match all of the services that are provided through Live. It is not a cheap system to run and maintain (I would like to see what it takes to run a network gaming service for 7 million + users, and make sure performance and security stay as high as possible). The numbers above aren't talking about XBL profits, they are talking about XBLA... I would venture that they are just barely breaking even or losing some money on Live as a service.
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