New York – Based on comments from Xbox chief operating
officer Dennis Durkin, BusinessWeek estimates that Microsoft (NASD: MSFT) likely passed $1
billion in sales from its Xbox Live online game service in its recent fiscal
year. Durkin told BusinessWeek that Microsoft is making more from sales of
movies, TV episodes and other content on Xbox Live than it is from
subscriptions to the service. With Xbox Live subscriptions costing $50 per year,
and half of all 25 million Xbox 360 owners subscribing — that works out to
about $600 million per year. Double that figure would be at least $1.2 billion
in sales for Xbox Live.


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