Xbox Addict

Xbox Live to Generate $1b Annually

The projection includes subscriptions, download revenue and online advertising.

In July 2008, Microsoft said that people had spent $1 billion on Xbox Live since the Xbox 360’s launch in 2006.

In-Stat said Thursday that all three console hardware makers are "positioned to generate hundreds of millions of dollars in annual online gaming revenue."

What’s helping drive this growth is a rise in broadband penetration--worldwide broadband subscriptions will reach 562 million in 2009, In-Stat said. "The combination of broadband, installed home networks, and pervasive Wi-Fi in gaming devices is fueling online gaming subscriber growth."

The research firm said that online gaming subscribers (handheld and console, not including PC) will increase 20 percent between 2005 and 2013, as unit sales of consoles decline.  In-Stat’s Stephanie Ethier stated, “Unit sales of game consoles will decline moving into 2010, as a result of both the weak economy and a peak in each vendor’s video game console lifecycle.

"The key vendors, including Microsoft, Sony and Nintendo, are staking out their online strategy to generate incremental revenue and promote brand loyalty.”