Have you heard about Xbox Live? Well, Xbox live has been very popular attraction especially among the young ones. Xbox live is an online multiplayer gaming and digital media delivery service operated by Microsoft. It helps you get connected to the latest games, connect with friends and stream HD movies. Being that popular, have you imagine how much income the Xbox Live has brought to Microsoft?
According to Bloomberg, Microsoft has come up with more than $ 1 Billion annual revenue for the fiscal year ending June 30, 2010. Bloomberg just estimated this figure based on the no of paid subscribers multiplied by its annual subscription fee.
This estimate as reported by Bloomberg seems to be true. According to Microsoft’s Chief Operating Officer Dennis Durkin,” sales from downloadable content had topped subscription revenue for the first time”, with this remark a $ 1.2B income is seen and part of this came from Xbox Live subscription revenue which is around $600M and another $600M from sales.
With Xbox’s popularity, it has reached around 12.5 M subscribers. Aside from the fun and entertainment you may get with subscribing Xbox Live, it is also very easy to join. You just need to create an account then you’re done. This online entertainment service can be availed with a minimal subscription fee. You can subscribe for Xbox Live for an affordable price of $50 per year.
No wonder, it has brought Microsoft that amount of revenue. It looks like the Xbox Live service has achieved the record breaking $1 Billion revenue based on the number of paid subscribers and the remark made by Microsoft’s Dennis Durkin.
As compared with other online content providers, Microsoft is definitely occupying a good spot. China’s online games market was estimated to have reached revenue of around $4.5M in 2009 and is projected to increase by 25 percent this year. While Blizzard made around $1.3 B in 2008, $1.5 B in 2009 and estimated to hit around $1.6 B this year. Sony and Nintendo were not so far behind. Sony has reached around $300 M in 2009 and estimated to increase to $500M in 2010, so as Nintendo with $100M in 2009 and projected a $200 M revenue in 2010.
Well, based on these figures it seems that PC downloads are on the rise. A lot of people are really spending time online to have fun and get entertained. It is undeniably a good business for these online content providers like Microsoft.
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