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Forums - Microsoft - Bloomberg estimates Xbox Live to be worth $1 billion+

 

Engadget 
Given the number of users and $50-a-year subscription fee, it's hardly a surprise that Microsoft is pulling in a ton of cash from Xbox Live, but it looks like the service has recently crossed a significant milestone: the $1 billion mark. That's what Bloomberg estimates for the past fiscal year, at least, based on the number of paid users (about 12.5 million), and a recent statement from Microsoft's Dennis Durkin, who said that sales of downloadable content had topped subscription revenue for the first time. That translates to about $600 million from subscription revenue, and at least $600 million from other sales, for a grand total somewhere north of $1.2 billion. Can't really blame Sony for following its lead, can you?

Update: Credit where credit is due -- turns out Forbes also arrived at similar numbers back during E3. It "conservatively estimates" that Microsoft raked in $625 million selling downloadable content in the past year, resulting in more than $1.25 billion in total revenue.
http://www.engadget.com/2010/07/07/bloomberg-estimates-xbox-live-to-be-worth-1-billion/


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12.5 million gold sounds dissapointing..



 

Lostplanet22 said:
12.5 million gold sounds dissapointing..



sounds good to me..



 

Face the future.. Gamecenter ID: nikkom_nl (oh no he didn't!!) 

12.5M gold is pure guessing. With 40m members and about 50% people with Gold is more about 20m or more than 12.5m.

Halo 3 leaderboards have 25m players.



That is quite impressive. It has really grown in the last few years - and didn't exist until about a decade ago.

Also, I hope this means that the Xbox 720, or whatever it's called, gets a super amazing hardware upgrade - DirectX 12 please!



 

Really not sure I see any point of Consol over PC's since Kinect, Wii and other alternative ways to play have been abandoned. 

Top 50 'most fun' game list coming soon!

 

Tell me a funny joke!

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I think they are talking about revenue generation (and gross revenue at that). And not value.

Mike from Morgantown



      


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I wander if those $600 million from sales of downloadable content are only Miscrosoft's share of it, or the total money spent by consumers.

Because according to Patcher MS' share is about 30% of the sales from downloadable content which could mean MS got $200 million out of a total $600 million, which would mean that Xbox Gold subscriptions still are the bigger revenue stream by far.



I remember from a couple of years ago MS said there was about 15 million paid users, so that number is way off.



kowenicki said:
Lostplanet22 said:
12.5 million gold sounds dissapointing..


Microsfoft themselves said they had 12.5 million gold subscribers........... In Jan 2010. 

Does that mean it is now higher or lower?  I don't see any reason why it could not be lower than in Jan 2010..probably will be higher when Halo 4 releases though =p.



 

double post;.