XboxLive to Generate $726 Million in Revenue

Emerging Media Dynamics has forecasted a great future for the Microsoft Xbox Live Video Marketplace web-based service. In fact, Microsoft's venture into the TV 2.0 territory could be synonymous with revenues close to $1 billion in just four years.

"The latest and final report in the Spotlight on Television 2.0 Leaders series delivers unique and early insight into just how much revenue Microsoft can expect to generate with its new Xbox-based video services, and how rapidly this business might grow. According to our preliminary analysis, the combined revenue from the sale of both TV shows and movies via Xbox Live could reach $92.25 million in 2007, growing each year through 2011, when the aggregate revenue from the sale of both types of content could top $726 million," revealed Emerging Media Dynamics.

"Live really is a vibrant community," stated Chris Satchell, general manager of Microsoft's game development group. "That's really important, especially when we look at some of the IPTV stuff, because the interesting proposition when we get to IPTV is best in class console, best in class television service, best in class online community. And if you have that connected community that you can still be part of while you're watching digital television, I think that offers you something pretty unique."

However, Emerging Media Dynamics then downplayed the success attributed to Windows Live Video Market comparing an estimated $726 million revenue with the total $44.2 billion revenue in 2006. In this context, in 2007, Microsoft main cash cows will be Windows Vista and the 2007 Office System.