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Friday, 03 December 2010 10:47

Only half of 360 owners have Gold

Written by David Stellmack
xbox360

Actually, it is a very surprising revelation
Microsoft has always talked up the fact that it has the best online experience with Xbox Live, but of course to enjoy it to its fullest extent you have to be a paying Gold level subscriber. Imagine our surprise when Microsoft let it be known that only half of its installed user base is actually paying $60 per year to be an Xbox Live Gold subscriber.

While Microsoft says that they have over 25 million Xbox Live members, only half of them are Gold subscribers. While it is a significant revenue stream for the company it could appear that they have a lot of room for growth in getting users to go Gold.

Despite the fact that half of the users are not Gold subscribers, it is surprising to learn that digital downloadable content and not subscription fees are the biggest revenue stream for Xbox Live. It does appear that even if users are not paying to subscribe to the service they are still buying lots of content which, of course, is good news for Microsoft.

Sources tell us that Microsoft’s recent launch of its Xbox Live Rewards program (which provides rewards in the form of Microsoft Points) to those who register for the program offers large Microsoft Points rewards for subscribing or re-subscribing to the service. The company is planning to launch additional initiatives to retain subscribers and increase content spending on the service in the upcoming months ahead.


Last modified on Friday, 03 December 2010 11:03
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Comments  

 
+4 #1 Warrior24_7 2010-12-03 11:05
The fact that anybody is paying $60 per year is astonishing! Say what you want, but this is THE best game service anywhere on the web, Steam included!
 
 
+2 #2 loadwick 2010-12-03 15:56
I've had a 360 from day one but never paid for LIVE. It is just too expensive. They should bring in some other levels, and i mean real levels not Silver, where you have say 2 hours a month free, then 5 hours for $10, 10 hours for $20....

Because its so expensive i have never tired it, and without trying it i am never going to pay for it. I just don't see playing the same games i have already paid for online against real people is worth that much money.
 
 
+2 #3 DJDestiny 2010-12-03 17:20
Quoting loadwick:
I've had a 360 from day one but never paid for LIVE. It is just too expensive. They should bring in some other levels, and i mean real levels not Silver, where you have say 2 hours a month free, then 5 hours for $10, 10 hours for $20....

Because its so expensive i have never tired it, and without trying it i am never going to pay for it. I just don't see playing the same games i have already paid for online against real people is worth that much money.


Bronze too ! Or even , Platinum .
Target the low-end to mainstream to high - end .
 
 
+5 #4 Rebellion 2010-12-03 17:29
I've had Xbox Live since the Beta launched back in September of 2002. People may complain about paying $60 a month, but its still cheaper than WoW or any other MMO.
 
 
0 #5 loadwick 2010-12-03 18:04
Quoting Rebellion:
I've had Xbox Live since the Beta launched back in September of 2002. People may complain about paying $60 a month, but its still cheaper than WoW or any other MMO.


I can appreciate there is a lot of people that are willing to pay that much, hence the 50% in the title. But there are just as many people that don't see $60 as good value. Some just don't want Live, some couldn't ever afford $60 but some just wouldn't use it anywhere near enough for it to be worth while. Hence why i think staggered membership is the best thing. People like you keep unlimited $60, but others who would only play for an hour or 2 a month can just pay a small amount, if they get hooked then upgrade!
 
 
+1 #6 OCaesar 2010-12-03 18:14
You all forget one big thing. I know of a lot of people who have "modded" their xboxes and thus wont enter xbox-live games. These people wouldn't pay 60$ a year to get banned. Might not be that entire other half, but proably a lot of them. And all of these people have once singed up for the xbox live service and have a running xbox live silver membership.
 
 
0 #7 loadwick 2010-12-03 18:31
Quoting OCaesar:
You all forget one big thing. I know of a lot of people who have "modded" their xboxes and thus wont enter xbox-live games. These people wouldn't pay 60$ a year to get banned. Might not be that entire other half, but proably a lot of them.


LOL, this is also true. I would love to know what the numbers are of modded xbox's.

Console games are massively over priced, just look at how much iPhone Apps are making because they are cheap, yes they are much cheaper to make too but I am a massive supporter of 'half the price selling twice as many' as it normally means more than twice as many and also means a lot more people are playing your game leaving the door open to advertising, sequels, spin offs...
 
 
+1 #8 bardenck 2010-12-03 18:37
Quoting loadwick:
I've had a 360 from day one but never paid for LIVE. It is just too expensive. They should bring in some other levels, and i mean real levels not Silver, where you have say 2 hours a month free, then 5 hours for $10, 10 hours for $20....




Because its so expensive i have never tired it, and without trying it i am never going to pay for it. I just don't see playing the same games i have already paid for online against real people is worth that much money.



5 bucks a month is too expensive??? granted ps3 is free, but haven't you spent more money than that on something that wasn't as fun as gaming that you didn't need?
 
 
0 #9 yasin 2010-12-03 21:44
Quoting bardenck:
5 bucks a month is too expensive??? granted ps3 is free, but haven't you spent more money than that on something that wasn't as fun as gaming that you didn't need?

to buy an xbox 360 s (4gb) costs about $200.its been out 5 years now.if you bought the xbox when it came out, and payed for gold ever since, then not only was the xbox itself more expensive, but you spent a good $300 on the subscription.which is pretty expensive.
 
 
+1 #10 loadwick 2010-12-03 22:02
Quoting bardenck:
5 bucks a month is too expensive??? granted ps3 is free, but haven't you spent more money than that on something that wasn't as fun as gaming that you didn't need?



But its not $5 a month, that is my point, its more like $60 per month, every month!

For someone who plays a lot then that's not too bad but for someone who might only play an hour or so maybe once every other month then that is a ridiculous price.

This is why they need a staggered membership, they would get a lot more members that is for sure.
 

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