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Rather than get involved in the debate with NJ5 (with whom I largely agree), I want to stress just how important the revenue from Xbox live is.

Let's assume there are 5 million Gold Members. It's probably more than that at this point, but I'm trying to be conservative here.

5 million x 4 dollars per month = 20 million dollars per month, 240 million per year.

So that's 240 million dollars per year that Microsoft is making and Sony isn't. They both make money on DLC, they both lose money by providing an network (with all the costs associated with upkeep), and then Microsoft makes 240,000,000 more a year from Xbox Live. That total is likely to continue to increase.

240 million is a LOT. Sony/MS would be lucky to make that much as an entire' quarterly net income (save the Holiday quarter).

 

 

 

 

Now imagine 2 years from now, we have 10 million Gold subscribers. That's nearly 500 million dollars per year in revenue that Sony has no counter for. Does anyone have any idea how Sony can magically make that 500 million dollars/year? 



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