Microsoft’s Xbox Live online video-game generated a $1 billion revenue mark for the first time in the year that just ended (approximately 6 times more than the previous revenue year generated), helped by sales of movies, avatar accessories and extra game levels.
“Xbox Live has helped sell a lot of consoles and created a lot of loyalty,” said Matt Rosoff, an analyst at Directions on Microsoft in Kirkland, Washington. “Everyone has been talking about Microsoft’s inability to innovate, but this is a pretty good example where they have innovated. They timed it just right with this one.”
Microsoft says about 25 million users paid an annual fee to play online games like “Call of Duty: Modern Warfare 2” which makes $600 million for the company, while products like movies, TV show downloads and other accessories also generated some big profit.
“The old playbook of ‘launch and leave’ is a relic of the past,” Durkin said in an e-mail. “Today with Xbox live, it’s now about ‘launch, sustain, retain’ by continually adding new content that enhances the original experience.”
Microsoft will release their official revenue figures for 2010 on July 22nd, so expect the fan-boy flames to rage even harder around that date.
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