thx1139 on 10 April 2009
Also compared to games that are sold at retailers there are other cost reductions that makes Xbox Live revenues more profitable.
Much lower shipping costs
Little revenue going to retailers
Less physical product that needs to be produced WiiFit, Rock Band and Guitar Hero require more product to physically be produced. Xbox Live cards and points cards are cheap plastic/paper cards. And most once subscribed simply use a credit card and never buy from retailers.
Said this before Xbox Live is like MS releasing a new blockbuster like Halo 3 every year.
Its libraries that sell systems not a single game.
