http://latimesblogs.latimes.com/technology/2009/01/microsoft-xbox.html

"Microsoft said today that it had sold more than 28 million Xbox 360s since introducing the game console in November 2005. That compares with more than 20 million PlayStation 3 consoles sold by Sony since it debuted the device in November 2006, according to Microsoft executives.

"We're widening our lead against PlayStation 3," said Aaron Greenberg, director of product management for the Xbox, who noted that going into the fourth quarter, Microsoft's lead had been 5 million consoles. "This was the best year in the history of the Xbox, despite the tough economy."

Greenberg credited last year's growth to a lineup of exclusive games, including Gears of War 2, Left for Dead and Banjo Kazooie: Nuts & Bolts.

He also credited the company's online game service, Xbox Live. The company said it now has 17 million Xbox Live subscribers who can use their consoles to find online opponents, download games or watch movies and TV shows. Though many Xbox Live subscribers opt for the free version of the service, Greenberg said that the majority pay $50 a year for the premium service, which includes the ability for Netflix members to view the service's Instant Watch movies and television shows for free.

Microsoft said online sales on the service, such as movie rentals and downloads of TV shows and games, jumped 84% in 2008 from 2007. The Redmond, Wash., company said consumers have spent more than $1 billion on Xbox Live, but it did not say how much of that was spent in 2008.

"It's a huge part of our business," Greenberg said. "And it's a quickly growing portion of our business."

How did the others do? NPD Group plans to release its sales number for the video game industry next week."

This is all full of win and none of it is BS!

So is that a billion dollars from the marketplace? like XBLA titles ect? Doesn't include memberships?

That's amazing, Xbox live is truly a amazing service. I know I use it on a constant day-to-day basis. Even going so far as to fore-go video rental stores in favor of digital streaming for my rentals. Its cheaper and I can be more lazy about it all, with no worries about late fees!

But I give my round of applause to Microsoft for providing us with a amazing service and its great to hear they are experiencing success with it.

MS said that they had earnt over $1b from Live a while ago so it would have to be well over that by now

This could be amalgamated earnings from the first Xbox as well.

If it really were a majority of the 17 million LIVE subscribers paying $50 a year - then that's >8.5 x $50 = $425million + X years...seeing as though the service has been available for 6 years it should have done well over the quoted billion dollars.

Majority can't be right.

Good to here MS is doing so well. The better off they are with the 360, the longer we have until we see a new console.

XBL subscriptions will have made well over a billion dollars, so yes he is right. The way he worded his sentance leads me to believe they have made a billion on content download.

"consumers have spent more than $1 billion on Xbox Live"

Microsoft don't make $50 on every Live subscription though
The cards sell on newegg for much cheaper so the wholesale price must be around US$25-30

@Seece

Then what you're suggesting is that they've made ~$1.5-2 billion in subscription fees and on top of that an extra billion just on content downloads?

I don't think their financial statements reflect this? Maybe they are selling the hardware at a loss then.

Its better than you suggesting that in the last 6 years all the live subscriptions and content download only amounts to 1 billion isn't it?