Half of Microsoft's 25 million Xbox Live members are Gold subscribers.

That's according to Microsoft's internal statistics, revealed by the head of Interactive Entertainment Business Dennis Durkin at the Credit Suisse Annual Technology Conference overnight.

"Of our 25 million members, about half of them are subscribers to the business and pay us about $60 a year for that," Durkin said. "So it's a very large business for us and for our partners."

In the US, Gold subscribers spend more than three hours a day using Xbox Live, and they spend more of their time on non-gaming applications, such as Facebook. 40 per cent of their time, apparently.

"This is a great opportunity for our media partners to stay connected with their customers and to sell them goods that they care about in their home," he said. "Whether that's game add-ons, movies, music, or clothing for their avatars, this is a very big business."

Reports suggest Xbox Live generates revenues of $1 billion for Microsoft. Do you contribute to that?

http://www.eurogamer.net/articles/2010-12-02-half-of-xbox-live-subs-are-gold

Holy cow.

And the XBL number is dated btw. This number is from June or July this year.
with Kinect video chat, ESPN, CoD Black Ops, Halo Reach and maybe even Fable III or Assassin's Creed Brotherhood, the number likely increased since then.

I expect 27 million members and about 13.5 of them being gold. That would mean more than 810 million revenue just for the fees. (Remember: Europe creates more revenue due to currency-affects) With DLC for blockbusters like Fable III, RDR, Halo Reach, Fallout New Vegas and of course CoD Black Ops revenue will be easily above 1 billion.

Add XBLA hits like Plants vs Zombies, MeatBoy, Limbo, Trials HD, Comic Jumper and the revenue will boost even further.

Movies, TV Shows, Avatars, theme packs will generate revenue as well.

In a word: The revenue will easily be above one billion. I know MS won't get every cent of the revenue created by movies /games etc, but even a small percentage would be more than enough to cross 1 billion USD revenue.

I would of thought that revenue is nearer to $1.5 billion by now!

Is there really anybody  who is paying 60$?

I always pay about 33 € - about 45 $.

Anyway XLive is a great service.

ONLINE STOREa:

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Christan Audigier bikini $23

Ed Hardy Bikini $23

Smful short_t-shirt_woman $15

ed hardy short_tank_woman $16

Sandal $32

christian louboutin $80


Sunglass $15                         
 
COACH_Necklace $27

handbag $33

AF tank woman $17

puma slipper woman $30


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Thats the reason why Sony will never charge for online gaming, way too profitable.

Thats loads of money.