Xbox Live Is Microsoft's New Billion Dollar Business (And Activision Wants A Piece)

Illustration for article titled Xbox Live Is Microsoft's New Billion Dollar Business (And Activision Wants A Piece)

Microsoft's Xbox Live service has pulled in an estimated $1.2 billion for the Xbox 360 maker, with annual Gold subscription fees and sales of digital content combined, according to Bloomberg. Good news for... Bobby Kotick?

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According to Microsoft's Dennis Durkin, the Xbox's chief operating officer, sales of Live content like movies, TV shows, Avatar items and other downloadable content items have outsold Xbox Live Gold fees, estimated at $600 million from 25 million paying users.

Microsoft's partners, like Call of Duty publisher Activision, want to share in those revenues. Activision CEO Bobby Kotick claims its his company's games, like Modern Warfare 2, that are "driving a lot of the subscription interest and certainly hours of game play." Sound fair? If so, Rockstar Games, Valve and Epic Games may also want a slice of that pie, Microsoft.

Microsoft's Online Xbox Sales Probably Topped $1 Billion [Bloomberg]

DISCUSSION

OrangeExige
Orange Exige

I don't know why developers don't publish their own games for digital download only.

It really is the best of both worlds. More money for the real workers (in the studio), less money to Activision and greedy publishers, cheaper for the consumer (possibly...).

MS already has their Games Marketplace for full Xbox games to download, they just need to promote self-publishing developers. Why not cut out the middle-man?

Comparing the cut that the publisher gets to the amount lost from retail customers, I'd say it about evens out. A big mp game like MW2... woulda put each and every person at IW in a solid gold yacht if they published the game themselves and had it for digital distribution only.