
Variety blogger Ben Fritz gets to the bottom of the debate between Xbox Live and the Playstation Network (PSN).If you're interested in the business of video games, there's only one statistic of any significance: Sony has generated $180 million in gross revenue from PSN two-plus years of life. As of the last E3, after about five and a half years, Xbox Live had generated over $1 billion.
That's not terribly surprising considering Xbox Live has a subscription fee and the Playstation Network doesn't. However, there's no way to untangle how much of Xbox Live's revenue is from subscriptions and how much is from sales. It just goes to show that you can't trust videogamers to actually buy stuff. It's better to charge them a regular fee they can forget about, like MMOs do.
By obonicus at 11:27 AM ON 02/26/09
Hm. 180 million in 2 years -> an average of 90 million a year.
Over 1 billion in 5 years -> an average of 200 million a year.
Microsoft has MADE a little over FIVE times as much money as Sony, but it'd be hard to argue that they're MAKING that much money based on just those facts.
I'm usually shocked by how bad press analysis of financials is, but this is just math.
By budgethero at 11:29 AM ON 02/26/09
"It just *does* to show that you can't trust videogamers to actually buy stuff. It's better to charge them a regular fee they can forget about, like MMOs do."
do you mean goes or does?
By salwon at 11:49 AM ON 02/26/09
But the real question remains: how much is from Rock Band songs, and how much is from horse armor?
By Switchbreak at 12:41 PM ON 02/26/09
I would chalk this up to the PSN not accepting my money. It denies both of my credit cards every time I've tried for the past year, while both XBLA and Steam accept them. I'd love to try out Flower, but Sony won't let me. I buy enough games that I probably make up the entirety of that 800 million dollar gap between the two by myself.
By PS3Owner at 1:50 PM ON 02/26/09
One of the reasons I chose a PS3 over XBOX 360 was the fact the Microsoft wants to charge me to play online.
I don't pay to play online for PC games (MMOs the exception) why in the hell would I want to pay online fees for a console (any console) I play half as much as my PC?
On top of that I swore never to buy an XBOX 360 once MS banned my Live account when I modded my XBOX orginal. So they don't want my money anyways.
By janine at 3:28 PM ON 02/26/09
Xbox Live definitiely makes morte money, but there's something deeply anti-math in comparing "two-plus years of life" against "about five and a half years." If I were to take Xbox's $1 billion and divide it by 5 years, I'd get two hundred million, so you could argue that they're only pulling down twice as much. Anyways, silly math.
By Tom Chick at 3:45 PM ON 02/26/09
Yeah, well, I'm not sure if you've heard, obonicus, but math is HARD!
By MattG at 4:03 PM ON 02/26/09
Switchbreak, I had the same problem as you until I figured out the secret that the Sony credit card system, despite having an "Address Line 2" field, did not want you to put anything in it. Put your whole address in one line and it might work.
By Nilus at 5:31 PM ON 02/26/09
The simple fact is that X-box 360 has been out longer, its cheaper and the PS3 exclusive games are just not cutting it. Really a game library is what makes or breaks system and MS has one up on Sony. Even with RROD and charging for Gold account X-box still out sells the PS3. I don't see that changing anytime soon.
By Borg03of77 at 11:09 PM ON 02/26/09
I have an Xbox live account and I love it. In fact I'd rather pay the $50 a year for gold membership on a great system with great games, and an even greater live experience, than get free online service with that Playstation 3 system. I've been a xbox live member since day one, and yes I've paid close to $350 for that time period, but well worth it my friends, well worth it indeed. I even own a wii, and i'd almost say the live on it is better than that of the Playstation 3, I'll konw I'll catch a lot of flack for that, but, hey its my opinion. You know what they say "opinions are like a**holes, everyones got one and most are bigger than others".
Borg03of77:
I have an Xbox live account and I love it. In fact I'd rather pay the $50 a year for gold membership on a great sys...More »