Xbox/Xbox Live making a profit?

RubusRooRubusRoo Posts: 10,262
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Does anyone know if Microsoft are making a profit out of the Xbox & Xbox Live service yet?

I know when the 1st Xbox came out there were huge development costs & each box was being sold at a loss, but has this changed for them now?

Considering that they are paying publishers like Activision huge sums to get DLC one month earlier than Sony/Nintendo, I was wondering if it's making them any profit yet.

Comments

  • He4rtHe4rt Posts: 5,379
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    I think i recall reading something about xboxlive making 1 billion dollers a while ago. I could be wrong.

    edit:here it is http://uk.xbox360.gamespy.com/articles/110/1104553p1.html

    Apparently the sale of movies,games and themes etc eclipse the money earned through subs. Quite impresive.
  • RubusRooRubusRoo Posts: 10,262
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    He4rt wrote: »
    I think i recall reading something about xboxlive making 1 billion dollers a while ago. I could be wrong.

    edit:here it is http://uk.xbox360.gamespy.com/articles/110/1104553p1.html

    Apparently the sale of movies,games and themes etc eclipse the money earned through subs. Quite impresive.

    $650 million profit. Quite incredible really. Thanks for that link, very illuminating.
  • linkinpark875linkinpark875 Posts: 29,686
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    Time to drop the charge to play online since they make so much money from downloads.
  • Daveoc64Daveoc64 Posts: 15,374
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    Time to drop the charge to play online since they make so much money from downloads.

    The investment they put into Xbox LIVE would not be possible without subscription.
  • [Deleted User][Deleted User] Posts: 468
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    Daveoc64 wrote: »
    The investment they put into Xbox LIVE would not be possible without subscription.

    erm yes it would. Free online has existed for years.
  • alternatealternate Posts: 8,110
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    You don't drop a charge when you have finally got the consumer base used to paying it. Witness the recent price hike that had plenty of internet rage but didn't result in a drop in subscribers.

    Live has been profitable more or less from day one and has offset some of the massive write offs they have had to make in developing and repairing the console itself.
  • [Deleted User][Deleted User] Posts: 1,329
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    Its about time Sony started to charge IMO, if Sony was making the money MS are raking in Sony would have more financial clout, making them more competitive. Maybe then MS exclusive DLC would become less common, not to mention other benefits that would come from a PSN fee.

    But... anyone mentions Sony charging for PSN, uproar!!!! From a community that wants everything and wants it for nothing!

    Well it will never happen, the jeolousy and hate will continue against MS and PSN will remain the lame duck its always being.
  • gavo360gavo360 Posts: 1,608
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    jalal wrote: »
    erm yes it would. Free online has existed for years.

    There no such thing as free online. Someone has to pay for it somewhere. Either the company, the end user or advertisers.
  • jim_ukjim_uk Posts: 13,280
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    They're taking the piss, they're charging for a matchmaking service, exactly the same service they provide to PC users for nothing. GFWL, Steam, PSN and whatever Nintendo do are free, it's only Xbox users who are getting shafted.
  • Daveoc64Daveoc64 Posts: 15,374
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    jalal wrote: »
    erm yes it would. Free online has existed for years.

    But those services (like the PlayStation Network) don't make any money.
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