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Microsoft made $1 billion from Xbox Live last year photo

Ever wonder how well Xbox Live is doing for Microsoft? According to Bloomberg, their online gaming service likely broke the $1 billion revenue mark for the first time in the year that just ended.

Actually, estimates say that they made $1.2 billion last year, even beating out analysts' estimates. A Goldman Sachs analyst says that their sales for the service were up from $800 million, from the year before. Sales of movie and TV show downloads topped the subscription earnings for the first time.

Now I'm sure you see why Sony wants to do paid subscriptions.

As for Microsoft, it must feel good to be the only game in the business.

 








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Dale North is Destructoid's Editor-In-Chief, a founding editor, and specialist in Japanese gaming. An accomplished musician, Dale was reporting from Japan during the earthquakes of 2011. Luckily, he got the fuck out alive and is home in America now with his wife and beloved corgi, Einstein. Dale is also a co-founder of Destructoid's sister anime site Japanator. Likes Corgis, Sega Saturn, PSP, iPhone, Photographic tools. Meet the rest of the team



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98 comments | showing # 1 to 50
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Markez's Avatar - Comment posted on 07/07/2010 11:25
Markez
Gad, I wonder how much dough that actually is in the picture. I'm sure despite them being an obviously for-profit company we'll see some people in here from the M$ took our jobs crowd. We'll all laugh and a cry a bit, and then hug it out over some purple drank.
garethxxgod's Avatar - Comment posted on 07/07/2010 11:32
garethxxgod
I have a feeling next Gen will see a paid online subscription base for Sonys console.

Damn you Microsoft. If your online service wasn't so damn sexy.
Volomon's Avatar - Comment posted on 07/07/2010 11:32
Volomon
Wonder how much that is minus fixing all the Xbox360's probably about 300 million.
brownjohn's Avatar - Comment posted on 07/07/2010 11:33
brownjohn
That header looks like its from Brewster's Millions. I love that movie!
Xzyliac's Avatar - Comment posted on 07/07/2010 11:34
Xzyliac
I helped but I can't take all the credit. It was a team effort. Everyone pat yourselves on the back.
Crock23A's Avatar - Comment posted on 07/07/2010 11:35
Crock23A
The best part is, people don't mind paying for an XBOX Live Gold subscription.

That's what happens when you make a decent product.
puddleglum's Avatar - Comment posted on 07/07/2010 11:42
puddleglum
I don't own either of the HD consoles, how do XBL and PSN compare? Have paying XBL customers been getting a better online experience than the free PSN?
Is there an appreciable difference in online multiplayer, or is the difference more in the bells and whistles?
Crunshii's Avatar - Comment posted on 07/07/2010 11:44
Crunshii
Next xbox will charge double that, Sony will get accustomed to charging $50, and Nintendo will join in the fun as well.

Good job supporting this :)
Nyktharas's Avatar - Comment posted on 07/07/2010 11:45
Nyktharas
@puddleglum

Pretty much just cross game chat now a days.
amtalx's Avatar - Comment posted on 07/07/2010 11:47
amtalx
@puddleglum:

Basic features are essentially the same. However, XBL has more features. Some people don't find those features particularly attractive, which leads to a lot of contention about XBL being worth the pricetag.
Rammstein's Avatar - Comment posted on 07/07/2010 11:48
Rammstein
@Xzyliac #MinorityBroFist

@puddleglum: I own both HD consoles and I can honestly say the entire experience is more robust on XBL. Sure, PSN is free, so its got that going for it but the little things that Microsoft does add up and that is why a majority of people don't have a problem paying for it.
lastdual's Avatar - Comment posted on 07/07/2010 11:52
lastdual
@puddleglum: Live is a unified platform, and is better integrated as far as partying up and coordinating activities with your friends goes. Plus there are just more people on it (and more people with mics).

I spend time on both, but it's like 90% Live and 9% PSN (with 1% for my Wii...).
PalidOne's Avatar - Comment posted on 07/07/2010 11:52
PalidOne
@ Crock23A

Agreed. Some people complain about having to pay but I don't mind it at all. I'm satisfied with the experience and I can usually find it at around $35 on Amazon which is a good deal.
KwikPwn's Avatar - Comment posted on 07/07/2010 11:52
KwikPwn
@puddleglum
PSN is ok, but it's like going to a steakhouse and ordering seafood. If online multiplayer is your thing, just go with the beef (Xbox Live).
Rammstein's Avatar - Comment posted on 07/07/2010 12:00
Rammstein
Just to clear up an earlier point, I *do* have a problem paying for it(everything in the entire universe should be freee! /4chanfag) but because it offers a better overall experience than the alternatives(Wii, PS3 and even PC) I don't really *mind* paying for it.
garethxxgod's Avatar - Comment posted on 07/07/2010 12:02
garethxxgod
@ puddleglum

Owning both let me say this. PSN is free. That's pretty much it. I love the PS3 but there's just so many different options on LIVE's end that make It worth it.

Examples. It's alot easier to Party Up with friends. This automatically guarantees (mostly) you'll be playing with the people you want. Over on PSN you literally have to wait for them to enter your lobby.

Also alot of Xbox games offer the option of Friends only, so along with the Party Option you have the option of playing with Randoms or Friends AND have the option of only hearing friends on the mic.

It really cuts out all the annoying 13 year old
assholes and random douches, something that's hard to do over on the PSN.

And that's not even mentioning the robust XBLA and cool shit like custom soundtracks in games etc.
Sexualchocolate's Avatar - Comment posted on 07/07/2010 12:03
Sexualchocolate
I would have to disagree with kwikpwn, the ps3 is designed for EVERYONE to be online and as such it gets online only games.

As far as ms is concerned online play is an extra that people can pay for or not have.

Psn is like going to a steakhouse and having steak.
Xbl is like going to a steak house and being charged for ketchup.
Daxelman's Avatar - Comment posted on 07/07/2010 12:05
Daxelman
@JimSterlingIsAJoke: Excuse me, how much money did Sony make off of their pay to play unified game service last year?

Oh wait, Sony didn't have one? Awwww, they could have made millions!
Jesus H Christ's Avatar - Comment posted on 07/07/2010 12:09
Jesus H Christ
@JimSterlingIsAJokelolol ReadingComprehensionlolol
llort het's Avatar - Comment posted on 07/07/2010 12:10
llort het
Stop giving Microsoft your money please
Vanor's Avatar - Comment posted on 07/07/2010 12:12
Vanor
One billion dollars in revenue. How much of that is actual profit?
Rammstein's Avatar - Comment posted on 07/07/2010 12:14
Rammstein
@llort het: As soon as they stop making a good product, I will.

Until then? XBox Live is winning teh Konsole Warz.
Markez's Avatar - Comment posted on 07/07/2010 12:18
Markez
"I would have to disagree with kwikpwn, the ps3 is designed for EVERYONE to be online and as such it gets online only games." Designed for EVERYONE to be online except for the people that don't want to pay extra for the new plus stuff. And it's like going to a steakhouse and only being served half a steak. Let's bring on more steak analogies.

@ Vanor, revenue =/= profit
Markez's Avatar - Comment posted on 07/07/2010 12:20
Markez
I mean geeze you make it sound like Sony is somehow the great unifier of online gamers for this console generation.
runtheplacered's Avatar - Comment posted on 07/07/2010 12:22
runtheplacered
llort het - "Stop giving Microsoft your money please"

Rammstein - "Until then? XBox Live is winning teh Konsole Warz."

"but because it offers a better overall experience than the alternatives(Wii, PS3 and even PC) I don't really *mind* paying for it."

Is this a contest to see who can come up with the shittiest comment?

And really? a "better experience" then a PC? What does that even mean? I'll tell ya.. it means absolutely nothing. It's pulled from the same dark and dank crevice you pulled out the idea of somebody 'winning' some fictional console war.
Sexualchocolate's Avatar - Comment posted on 07/07/2010 12:27
Sexualchocolate
@markez you do realise everything in Psn+ is completely extra, right? And that it's not required to play any games.

So my point stands, providing you have internet, every single ps3 owner in the world can game online.

I really don't see your point.

In fact live is like buying a full steak (game) then needing an extra subscription to get half of it, so yeah live is like getting half a steak and having to pay an extra fee on top of the price of the steak to get the other half.
Mr Andy Dixon's Avatar - Comment posted on 07/07/2010 12:27
Mr Andy Dixon
@garethxxgod

Thank you, my friend, for being the voice of reason!
Palin_RMA's Avatar - Comment posted on 07/07/2010 12:28
Palin_RMA
Thanks, Will stick with Steam for most of my gaming.
Rhuno's Avatar - Comment posted on 07/07/2010 12:29
Rhuno
@KwikPwn

He said it best.

Congrats to MS, I wish LIVE was my idea.
Bakewell's Avatar - Comment posted on 07/07/2010 12:32
Bakewell
@sexual chocolate

Go cry elsewhere.
Markez's Avatar - Comment posted on 07/07/2010 12:34
Markez
My point is that sure, it's something of an apples to oranges comparison, but in comparison to Live the PSN is just a bit half-baked and not as competent. I don't care about the small cost of Gold, it's cheap, and I don't care about the argument that 'on principle' it's wrong to pay for Live. I just think it's asinine. I see your point about everybody online with the PS3, though, yes.
Sexualchocolate's Avatar - Comment posted on 07/07/2010 12:35
Sexualchocolate
@bakewell cry? About mislead fools giving a customer screwing company a billion dollars for a service with comparable free alternatives?

I'm not crying friend, I'm laughing. I don't pay for, pretty much cross game chat.
MightyFavog's Avatar - Comment posted on 07/07/2010 12:36
MightyFavog
According to Bobby Kotick, 60% of that money should be his.
Nyktharas's Avatar - Comment posted on 07/07/2010 12:36
Nyktharas
My math could be wrong, I know there are a lot of other factors as well, but at 50 dollars a year, that would mean out of a supposed 40 million Xbox owners, only 20 million pay for gold?

That's considerably lower then I imagined it would be. By the numbers only 50% of Xbox console owners pay for gold, and play online.

Still a lot of money for MS regardless.
RenegadePanda's Avatar - Comment posted on 07/07/2010 12:42
RenegadePanda
Too bad PSN+ is absolute shit.

Yeah, I can pay 30 bucks to access a 60 minute demo of inFamous and play a handful of throwaway games that would be cheaper to buy and own instead of being tethered to a subscription. Oh, and a free theme that goes away if I quit.

XBL has more, maybe not to everyone's tastes, but it does. XBL also has a much more streamlined experience, not to mention a legitimate community aspect where things actually happen. XBL has something new practically every day, somewhere. As opposed to PSN where I log on every Thursday to find absolutely nothing.

Even PSN's messaging system sucks. I don't bother messaging PS3 friends because it's guaranteed they won't ever realize I actually sent them a message in the first place. Let's not even get into the fact that a PSN outage means you can't play certain games, or the fact that many PS3 games have noticably more lag than 360 counterparts.

Or should I bring up all the random PSN errors that constantly kick me offline while my 360 and PC's never seem to be affected.
Bakewell's Avatar - Comment posted on 07/07/2010 12:43
Bakewell
@sexual chocolate

Looks like crying to me.

You mad.

Mad because a company you hate has made some money. Money that hasn't gone into your Gods pockets.

Go make yourself a herbal tea and remind yourself that this has zero impact on your real life. Very few people actually give 2 fucks about your opinion because we all know (and you've admitted it yourself) that you come here to argue and piss people off.
wardprod's Avatar - Comment posted on 07/07/2010 12:52
wardprod
Poor Activision, a fair amount of this money should be theirs, but the mean MS peoplez are not giving them a pennyz. QQQQQ
the guy with the hat's Avatar - Comment posted on 07/07/2010 12:54
the guy with the hat
Bakewell. Please join forums if you haven't already :)

This was a great Fanboy Wednesday, keep it up frontpage.
garethxxgod's Avatar - Comment posted on 07/07/2010 12:54
garethxxgod
@ mrandydixon
Thanks man, both services can be fun
Bakewell's Avatar - Comment posted on 07/07/2010 12:56
Bakewell
@the guy with the hat?

What?
ZeeJayTL's Avatar - Comment posted on 07/07/2010 12:58
ZeeJayTL
PSN= Masturbation: sure you get a good taste of sex, but it's free and not as fulfilling.

X360= Sex: Sure you have to pay for it, but the features and extra people make it worthwhile.
Vanor's Avatar - Comment posted on 07/07/2010 12:59
Vanor
As I asked before: How much of that 1 billion dollars in revenue actually *profits* Microsoft?
KingSigy's Avatar - Comment posted on 07/07/2010 13:00
KingSigy
Holy fucking shit.
Everyday Legend's Avatar - Comment posted on 07/07/2010 13:00
Everyday Legend
SexualChocolate, I knew you'd chime in eventually, and I knew you'd shake your fist at this.

The steakhouse analogy isn't all that true. Observe:

XBL: Going to a steakhouse and paying for a steak that's cooked the way you like, with extras costing, well, extra.

PSN: Going to a steakhouse, having to suffer through slow service, not getting the steak cooked right, and ketchup is the only extra you have available to you. Unless, of course, you feel like shelling out a monthly subscription for free bread, salad, drinks and other accoutrements, and the moment you stop wanting to pay for them, they take all of it and place it just outside of reach, leaving you with nothing more than a steak that isn't quite done right. Oh, and getting friends to sit at the same table as you when they want something different than you is impossible.

There. Fixed that up nicely.
Bluj162's Avatar - Comment posted on 07/07/2010 13:04
Bluj162
Sony would be making 1 bill too if 54% if its customers bought two consoles and charged for online service. Microsoft is the "only game in the business" if you don't like your money.
Nyktharas's Avatar - Comment posted on 07/07/2010 13:06
Nyktharas
I love this thread. lol

It basically boils down to "Mines better then yours because I pay, there's lots of features you don't have that make it better, but all I can name is cross game chat."

Or people trying to say "Paying $50 for teh online play is for herp da derpz! All you are stoopid headz, my free service is teh winnarz. I don't need to give a reason why, it's just free!"

This thread is making a long day at work go by faster. :)


/popcorn
Bakewell's Avatar - Comment posted on 07/07/2010 13:07
Bakewell
@bluj162

I think this is talking about money from xbox live alone.

I think I got that idea from the header at the top of this story.

Take a quick look for me will you? Just to make sure I'm not making things up.
garethxxgod's Avatar - Comment posted on 07/07/2010 13:08
garethxxgod
On the flipside, Xbox is far less community oriented. Having had only a PS3 to judge online for 2 years I can say it's easier to make more friends through playing games. I've been apart of a few communities through games on PS3.

Over on Xbox sending a random gamer you played a fun game with usually doesn't result in a reciprocated friend addition. For all the awesome features like Partying Up which is awesome, it also provides for less random friends and less game communities.

Also , give gamers the option to VTK in almost every game and they will
abuse the fuck out of it. In short, PS3's community is way more open because it has to be.
Bluj162's Avatar - Comment posted on 07/07/2010 13:11
Bluj162
@Bakewell

You are what all Xbox fanboys aspire to be.
Markez's Avatar - Comment posted on 07/07/2010 13:13
Markez
@ Vanor, yeah I apparently can't read, buddy, sorry.

"Friar estimates Xbox Live has gross margins, the percentage of sales remaining after deducting production costs, of about 65 percent."
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