The reason why you pay for Xbox Live - An attempted Explanation

[theprof00]

NiKKoM said:

theprof00 said:

I thought people used the $ sign because they bought their way into the market.

and yes, charging for live is one of the only reasons ms has come even close to turning a profit. What is the figure like 15million subsribers (i really dont remember) times 50$ a year? take away the 5 billion they've made off of that since the first xbox and you have an M$ which is 5 billion in the hole.

 

Question.. we all assume that the PS3 is sold at a little loss or none.. so could their online be the reason that Sony is losing so much money?? Cause it takes millions a month to maintain such a service..

 

I think the question behind both questions is that those millions are a drop in the bucket compared to the offering. Over a years time it might run 10-15 million but Ms is making nearly 6-7 times that amount or more, in subscription fees.

Yes it is costing sony money, but in the long run, it is easily offset by about 100k games sold a month or so.

plus i thought most of sony's online was handled by the developer.