Thursday, July 8, 2010

Microsoft digital revenue well ahead of Sony and Nintendo

Microsoft’s Xbox Live platform was worth $US1.2 billion in the past year, according to figures from Bloomberg.

About $US600 million of that revenue was obtained by multiplying the $US50/ year fee for Xbox Live by the services’ userbase – 12.5 million. The other half comes from a comment by Xbox COO, Dennis Durkin, that downloadable sales topped subscription revenue for the first time this year.

In comparing other online services, according to a report by Gamepro, World of Warcraft is expected to be worth $US1.6 billion in 2010, PC downloads are projected to reach $US1 billion in 2010, and Apple iPhone games and apps combined could also reach the $US1 billion mark this year.

Concerning for both Sony and Nintendo, estimates suggest Sony’s online revenue could only be expected to rise to $US500 million in 2010, while Nintendo will be lucky to hit $US200 million.

Sony will be hoping its own subscription model, PlayStation Plus, narrows that gap, while Nintendo has yet to make any firm announcements on how it will catch up to the others in the digital realm.

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