this :P

And here is proof that this thread is dumb and base less:

"Revenue from our Entertainment and Devices Division decreased across most lines of business including Xbox 360 platform and PC game revenue which declined primarily as a result of decreased revenue per console due to price reductions during the past 12 months, partially offset by increased console sales and Xbox Live revenue."

http://www.microsoft.com/msft/reports/ar09/10k_fr_dis.html

nothing wrong with the thread, it´s the article that is fail in that case.

Posted this cause it makes no sense at all, no mutter how i try I cant understand how they can´t make money out of live.

Well,  Live is lumped in with EDD, which made a profit.  So the article is making a claim that is easy to have researched to be wrong.  See my above post.

I saw the post and that must be it, there cant be any other explanation at least not one I could make sense of.

This analyst is a joke. I think someone calculated it out and saw that total xbl profits are over a billion dollars a year. Is this guy seriously saying that the cost of having some servers set up and updating software is over a billion dollars annually? Crack is a wonderful drug.

If this is true though imagine how much Sony must me losing on PSN.

What I saw in the analysis is things that didn't differentiate the videogame division. From what I was able to tell by digging a bit deeper, is that Microsoft is throwing money down a rat hole trying to promote Bing to go against Google. They are advertising it, and doing deals that cost them money. Bing costs them more money than it brings in, because of they money they are spending on marketing.

Anyhow, if someone can break out the actual revenues generated from Live out of this, it would be beneficial.

I posted a source that explicitly says that Live is in the EDD division, not the Online Services division.

I knew it!

MS makes a lot of $$$$$ from XBL, but XBL isn't the only thing in its online services i'd wager.