Xbox Live banks in a billion (Activision wants a piece)

According to the experts at Bloomberg, Microsoft’s Xbox Live service has broken sales of $1.2 billion and generating a revenue of over $1 billion for the year ended with a combination of gold subscription fees and digital content sales.

Microsoft has stated half of their 25 million users paid an annual fee to access Xbox Live. That would be about $600 million. According to Dennis Durkin, Xbox’s chief operating officer, sales of digital content such as movie and tv show downloads has topped subscription fees for the first time. Another $600 million.

Micrisoft’s partner, Activision wants a share of those revenues. Activision CEO Bobby Kotick claims their games like Modern Warfare 2 that are “driving a lot of the subscription interest and certainly hours of gameplay.” If Activision decided to charge a fee for Modern Warfare 2, I highly doubt they will be able to boast about their 50 million registered players on Xbox Live.

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