Xbox Live generated over $1.2 billion year ended June 30

Bloomberg reports "Xbox Live revenues exceeded $1.2 billion for the fiscal year ended June 30. And a whopping 50% Xbox Live subscribers are in fact paying for Gold membership, comparing to free Xbox Live Silver.""About half the service's 25 million users paid an annual fee to play games online like "Call of Duty: Modern Warfare […]

Bloomberg reports "Xbox Live revenues exceeded $1.2 billion for the fiscal year ended June 30. And a whopping 50% Xbox Live subscribers are in fact paying for Gold membership, comparing to free Xbox Live Silver."

"About half the service's 25 million users paid an annual fee to play games online like "Call of Duty: Modern Warfare 2" by June 30. That would be about $600 million. Sales of products like movie and TV show downloads topped subscription revenue for the first time," Dennis Durkin, said in an email.

Microsoft is working to extend Xbox Live's success to mobile phones. Its overhauled phone software, available later this year, will let customers play Xbox Live games and see users' avatars, profiles and achievements.

Microsoft will post operating income of $1.04 billion for the division in the year ended June 30, projected Sarah Friar, an analyst at Goldman Sachs Group, who recommends buying the shares. That's more than six times the income in fiscal 2009. The company is due to report 2010 results July 22.

[Source]