Bloomberg guesstimates that Microsoft’s Xbox Live service “probably” surpassed $1 billion this past fiscal year. The financial outlet came to that conclusion using fancy mathematicals after Microsoft claimed that half of Xbox Live’s 25 million users paid the annual fee, and Xbox COO Dennis Durkin stated “in an email” that product sales on the service surpassed subscription revenue. Now, we all know there are ways around the $50 annual Xbox Live fee, but let’s surmise Bloomberg is right with its estimate of $600 million in revenue. That would mean the service generated $1.2 billion in sales last year.
Contacted for comment, Microsoft’s official statement read: “We do not have any more details to share. Microsoft does not break out Xbox LIVE earnings.” At the end of the company’s third quarter, it did say that Xbox Live was a major contributor to revenue for the division that houses the Xbox. The company will officially announce the results of its fiscal year, which ended June 30, on July 22.
Bloomberg: Xbox Live sales ‘probably’ topped $1 billion originally appeared on Joystiq on Wed, 07 Jul 2010 20:00:00 EST. Please see our terms for use of feeds.
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