According to Bloomberg, Microsoft “probably” hit $1 billion revenue this past fiscal year in earnings from Xbox Live alone. In an email, Dennis Durkin, the COO of the Xbox portion of Microsoft, said that half of the 25 million users connected to Xbox Live have paid for a one-year subscription to become Xbox Live Gold members, which adds up to roughly $600 million in subscription fees. Add to that the revenue from downloadable content such as movies, games, and TV shows, as well as small micro-transactions like avatar costumes and interface themes, and you’ve got quite a big number on your hands. According to Durkin, “Sales of products like movie and TV show downloads topped subscription revenue for the first time,” bringing Bloomberg’s estimate towards the $1.2 billion dollar mark in revenue.
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