14 DAY TRIAL // Recently, Microsoft praised the performance of the Xbox Live service it offers to those who have bought an Xbox 360 gaming console. Since it was initially introduced in November 2006, more than 1 billion dollars have been generated by Xbox Live, mostly in 2008, when revenue went up by more than 84%, mainly because of the bigger amount of content introduced to the service.
Even if the performance seems impressive at first glance, it is only a fraction of what Xbox Live can achieve, if we are to believe the data offered by In-Stat, a research firm that has focused on evaluating Xbox Live, the PlayStation Network and the Wii Channel services. In-Stat has said that, by 2013, the Xbox Live service will create 1 billion dollars in revenue in one year for Microsoft.
The firm has stated that “Each of the three key vendors is positioned to generate hundreds of millions of dollars in annual online gaming revenue from online service subscriptions, download revenue, and/or online advertising.” According to In-Stat, more and more of those who have bought a current generation gaming console will get access to broadband Internet connections and will hook their devices up in order to benefit from multiplayer services, multimedia offerings and other stuff from Microsoft, Sony and Nintendo. Subscriptions for consoles and handhelds are expected to rise by around 20% until 2013.
Considering the current trend that is favoring digital distribution of videogames, we might even see a bigger increase in the revenue generated by Xbox Live or by PSN. Imagine more people having uncapped broadband and Microsoft releasing hits like Halo 3 or Gears of War 2 through Xbox Live. A lot of gamers might skip the drive to the local videogames store and stay on the couch, watching a Netflix movie while the titles they want are downloading.