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Nearly a third of Xbox 360 owners oblivious to Xbox Live Arcade

Microsoft was proud to boast at Gamefest 2007 that its Xbox Live gaming service has garnered more than 7.1 million users, reports GamesIndustry. Not only are there many gamers going online – they are also buying content. Microsoft said the attach rate for Xbox Live Arcade games is about six to seven games per user.

While Microsoft’s entertainment and devices division saw a loss last quarter, the company is making money from its Xbox Live service. According to Gamasutra, Xbox Live Arcade games see an average 156 percent financial return over 12 months for titles published so far, with over $30 million made on the service to date.

Interestingly enough, the gains that Microsoft is enjoying from its Xbox Live service doesn’t come from its entire user base. According to industry research from Frank N. Magid Associates, cited by GameDaily, 30 percent of Xbox 360 owners have never even heard of Xbox Live Arcade. And of those who have used Xbox Live Arcade, only 28 percent have purchased at least one game from the service.

Even with Xbox Live Arcade penetration not at its full potential, Microsoft is predicting that it will rack up 45 million downloads and more than 100 games on the service by the end of 2007.

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How many of those 7.1 million are paid subs?
By peritusONE on 8/14/2007 10:07:11 AM , Rating: 3
I'd like to know how many of those 7.1 million users are paid subs. Now that they have the free silver "membership", they count those too, which made their numbers appear to skyrocket after the release of the 360.

Nonetheless, it's hands-down the best online service, anywhere, free or paid.

RE: How many of those 7.1 million are paid subs?
By FITCamaro on 8/14/2007 10:12:41 AM , Rating: 5
I agree. And I'm proud to say I'm a Gold member.

But remember, just because you're not a Gold member doesn't mean they're not making any money off you. You still can buy content.

Personally I don't see the point of owning a 360 without a Gold membership. A lot of the value of the console comes from the excellent multi-player.

RE: How many of those 7.1 million are paid subs?
By omnicronx on 8/14/2007 10:48:59 AM , Rating: 3
Meh some people play online others don't, I for one bought Gold, and only use it for game and roster updates heh, I only play online maybe once a month. Of course i foresee much more online play as friends begin to get xbox live. I love being able to send voice messages.

RE: How many of those 7.1 million are paid subs?
By Wolfpup on 8/14/07, Rating: 0
RE: How many of those 7.1 million are paid subs?
By omnicronx on 8/14/2007 11:28:33 AM , Rating: 2
Ripoff is a bit harsh, as i said even the few times i use it year still makes it worth it in my books. And if you play games online its a necessity. 60 dollars for 13 months, so less than 5 dollars a month is not a ripoff by any means. Now paying countless dollars a month to play WOW is a ripoff ;)

RE: How many of those 7.1 million are paid subs?
By FITCamaro on 8/14/2007 11:57:58 AM , Rating: 2
13 months is $45-50. Not $60.

RE: How many of those 7.1 million are paid subs?
By peritusONE on 8/14/2007 12:10:42 PM , Rating: 2
You can typically find the 12+1 sub cards for $40 online or at Circuit City when they have their sale every 3-4 months. That makes it more towards $3 a month.

RE: How many of those 7.1 million are paid subs?
By webdawg77 on 8/14/2007 12:36:01 PM , Rating: 2
*background music*

For less than the price of your double mocha latte, you could help fund endless hours of online gaming on Xboxlive ...

LOL! But seriously, I would call that a really good value. I know that I have used it to great advantage playing GoW and the NFS series online. Also, with all of the "online achievements", playing online is a must if you want all of the gamer points. Too bad you can't redeem those points for something. Come on Microsoft!

RE: How many of those 7.1 million are paid subs?
By omnicronx on 8/14/2007 12:54:17 PM , Rating: 2
sorry, i'm canadian ;)
costs 59.99 here :)

By ObscureCaucasian on 8/14/2007 3:48:06 PM , Rating: 2
I got a deal through

20 USD for 13 months.

By rushfan2006 on 8/14/2007 4:44:07 PM , Rating: 2
Ripoff is a bit harsh, as i said even the few times i use it year still makes it worth it in my books. And if you play games online its a necessity. 60 dollars for 13 months, so less than 5 dollars a month is not a ripoff by any means. Now paying countless dollars a month to play WOW is a ripoff ;)

It never ceases to amaze me how people quantify value as only a dollar amount. Value is what one gets out of something, based on what they paid for it. Value is a relative term that changes from person to person. I had xbox live (the first year it was out )it wasn't horrible, but it wasn't that great in my view either - I thought the players were immature and thus the draw just wasn't there for me - I paid $50 for the wasn't a good value to me. I'm also a WoW player -- for the last 2 years I've been paying $15 a month ($360 spent so far for those playing the home game)....that $360 spent is has proven to be a far greater VALUE to me than the $50 spent for Xbox Live.

I enjoy the game, and what's more in that time I've come to known about 40-50 good folks who have turned into gaming friends even outside of WoW -- extending to different PC games.

If you don't like teh game -- no its not a good value for you...because you don't like it. Its quite simple logic actually. Just like if I don't like xbox or xbox is it a good value for me?

Obviously, for those of us who pay monthly to play a game -- we aren't alone...since about 100 million people world wide pay a recurring fee to play some kind of video or computer game each month.

And that is a conservative estimate from a gaming mag article over a year old.

Value isn't just money....its the intangible worth as well.

By JCheng on 8/14/2007 1:46:01 PM , Rating: 2
You can buy 1-month Gold memberships for around $5. Not a bad way to go if you just want to try it once or twice a year.

RE: How many of those 7.1 million are paid subs?
By BigLan on 8/14/2007 10:53:34 AM , Rating: 3
I'm a silver member, and don't really see the point paying for gold. I prefer single player games rather than multiplayer, and if I want to play online would do so for free on my PC or actually go to my friends' houses.

I still get all the game demos and trailers at the same time as gold members, and can buy stuff from XBLA and the video store for the same price, so why should I give MS $5 per month?

If they started limiting the silver membership, giving gold members timed exclusives or discounts from the arcade or video store or exlusive promotions (like the free Austin Powers film) I might think about it, but for now I'm doing ok and can use a 2-day trial card if I want to play against some of my friends on a Friday and Saturday.

By SigmaHyperion on 8/14/2007 11:27:39 AM , Rating: 2
Gold members do get timed exclusives.

Most of the highly-anticipated demos are released to Gold members 1-2 weeks prior to their release to Silver members. And using one of the Free Trial cards doesn't unlock access to locked demos.

By BigLan on 8/14/2007 2:15:43 PM , Rating: 2
Maybe in the past, but I got the Forza2, stranglehold and bioshock demos the same day as paying gold members did. AFAICT, all that gold does is let you play online, which doesn't seem like very good value for me.

Like I said, I'd probably become a gold member if there was more exclusive stuff.

By robinthakur on 8/14/2007 10:58:20 AM , Rating: 2
I have a Xbox 360 which came with a free gold membership for one month. I think I used that a couple of times the first time I used the console, and didn't really like it, but not since it expired and I'm darn well not paying for it lol!! To be fair I don't really play on it very much as I have a PS3 and Wii as well as a PC, but its nice to know its there :) I suppose its good that they cater for the people that play online, but it really annoys me when they have an online multiplayer on games but no 1-machine multi player. Its nice to have the option for when you have more than one person round rather than each of you sitting in their own individual darkened rooms playing/ bringing their consoles monitors round and playing through a router...


RE: How many of those 7.1 million are paid subs?
By IceTron on 8/14/07, Rating: -1
By killerroach on 8/14/2007 2:02:12 PM , Rating: 3
Um, a PC, where you can do all of that for free?

XBL Gold provides a great unified and streamlined experience, but I still am shaking my head as to the cost, mainly from the background of being a PC gamer. Through that prism, it makes it hard to justify paying for any of it, even if XBL does what it does in a manner that is astonishingly efficient for console users.

By therealnickdanger on 8/14/2007 2:58:48 PM , Rating: 2
Well, the point of paying for it comes down to the fact that it is so efficient. I've been on Live since the first public beta and I've been a PC gamer since the 80s. While "free" is always awesome, it is impossible to get the same experience on a PC in as simple a method as you can get it on Live.

You need multiple programs of varying quality with different settings and tweaks just to arrive at something comparable to Live on a PC. Granted, the PC gives me a much higher degree of flexibility and customization, but at a cost of being harder to use and with less stability. Your mainstream PC gamer doesn't know IPs from GUIs, they'll just allow their PC to fill up with spamware.

Besides, whatever costs you end up paying to be a Live Gold member is less than it costs to be a PC gamer with relevant hardware. 360 + Live = $400. You can't build a comparable gaming rig (performance, not parts) for that price, not even after three years of Live ($500). So the whole argument of "not as good because it's not free" is rather moot. Sure, 3 years from now you could build something that outperforms it, but then the 360 will be $150...

I dunno, I have always seen Live as a bargain. The only gripe I have is that the costs of movies and TV shows THAT I CAN'T BACKUP IN ANY WAY are too high. If you expect me to pay $5 for a HD movie rental for 24 hours, when I can get from Netflix or Blockbuster for less and keep and watch as often as I like, then you're damn crazy. I don't mind paying $2 for a great episode of Metalocalypse, but being forced to keep it on my 360 HDD is ridiculous. Let me back it up onto my Vista PC. Let me burn it to a DVD, let me attach a USB HDD, let me do something other than what is currently offered.

Once we get more "Games for Windows" and "Live for Windows" goes mainstream, I think there will be a natural shift away from the current offerings like Xfire, Gamespy, and other apps... perhaps even Steam will on day succumb. There's just no telling.

RE: How many of those 7.1 million are paid subs?
By afkrotch on 8/14/07, Rating: -1
By lompocus on 8/14/2007 10:30:15 PM , Rating: 2
Yes, I'll pay no money for having to sign up for every game online separately, having extremely limited demos, very slow download times, and far larger demos, not to mention lack of a headset being standard and lack of a universal social system.

I'd rather pay 4.50 a month for all of that AND a bag of chips.

By One43637 on 8/14/2007 3:35:04 PM , Rating: 3
I'd also like to know how many of those paid downloads came from items that were free in different console versions of the game, but they forced you to buy them in the 360 version....

I too have a 360 and a paid subscriber to Xbox Live, but some of the items they have on sale are ridiculous.

By KentState on 8/14/2007 1:59:06 PM , Rating: 2
I also wonder if they are counting the fact that anyone can create a Live account as long as they have a Passport account. I know my brother, his gf, my gf, and myself all created a Live account using my 360 to keep our own stats.

By lompocus on 8/14/2007 4:19:16 PM , Rating: 2
I doubt any are silver membership.

Now, it is well possible this is silver and gold combined that have gone online . That recent poll said many owners were unaware of HD services, demo services, and one can infer that if only 40% of xbox owners know about all this stuff, one can assume 40-60% of Xbox owners have gone online at some time.

Attach Rate
By kibets on 8/14/2007 10:00:56 AM , Rating: 2
I only buy one or two games a year but probably spend $60/month on downloading video content on Xbox Live! I love it, just wish the HD content would download faster. They have really improved the number of available titles.

RE: Attach Rate
By FITCamaro on 8/14/2007 10:09:35 AM , Rating: 2
I don't know about video, but downloading things like demos is extremely fast. Granted HD video is much larger. But on my connection, it maxes out my download speed when downloading from Live. I get about 500-800 KB/s. I downloaded about 35MB in under a minute. Which to me is damn good.

Just saying its probably your connection slowing you down, not Live.

RE: Attach Rate
By Netscorer on 8/14/2007 10:19:32 AM , Rating: 2
I also wish they would lower the price for the HD content to the SD level. Let the people decide what resolution they want to download based on their TV capabilities, not on the price.

RE: Attach Rate
By afkrotch on 8/14/2007 2:28:49 PM , Rating: 1
Ya, you can download videos off Amazon too. Guess what though. You are stuck within specific console settings or region to download. My 360 is worthless at downloading videos, cause I'm not allowed to do it.

I bought a Japanese Xbox 360 so that I could play Japanese games (not to mention, it was extremely cheap for the console and easily available - was living in Tokyo during the time), as Microsoft is an ass and region locked their games. Luckily enough many publishers either put multiple regions on their games or simply left them regionless. My US Gears of War works fine on my Japanese Xbox 360.

I also could easily purchase videos, until the Spring update, when Microsoft locked that down and lost my money. What for? Hell if I know. So now, I have a bunch of worthless Microsoft points. I'm waiting for more Idolm@ster content to spend the points. After that, they can suck my nuts. I'm not subscribing to Xbox Live Gold again.

Best online gaming system.
By bigpow on 8/14/2007 12:39:33 PM , Rating: 2
Just the ability to chat with friends everywhere (including those living abroad) for free with very good quality, is enough reason to use Xbox Live continuously. Add the recent addition of MSN messenger to that too.

Reason #2 is to download game demos and movie trailers, still for free.

And of course, the ultimate reason, is the ability to play with your buddies online. This one requires GOLD account.

The only reason I could think of why people don't use Live, was that they didn't have Internet connection or couldn't set it up (conveniently).

I think M$ needs to push an easier way to connect, maybe cheaper or built-in wifi adapter - to boost the Xbox Live population even more.
Another idea is to have an easier WM Connect, to penetrate the HT market better - now that HD-DVD add-ons is cheaper.
Basically to make it more successful, it needs to be easier to use like iTunes.

But all and all, it's still the best online gaming system today. And the number will continue to grow.

RE: Best online gaming system.
By Rampage on 8/14/2007 1:55:38 PM , Rating: 2
Don't say that.
I hate iTunes.

Bill Gates: Don't make it like iTunes. Please.

RE: Best online gaming system.
By afkrotch on 8/14/07, Rating: 0
RE: Best online gaming system.
By cbo on 8/14/2007 3:59:59 PM , Rating: 3
HTPC users don't care about using the 360 to extend their HTPC's capabilities

I do and lots of other people on the htpc forums I frequent do also. Especially if you have more than one HDTV, at one point it was one of the few extenders that supported HD.

I have a prepaid Gold memberships and I feel it is worth it and cheap. It only get expensive when your console suffers from RROD. I also game a lot of my PC which was kick ass last year. Thats why I feel console will always have their appeal. They deliver consistent gaming quality(I did not say the absolute best quality ,for all my pc fanboys out there)for the price of a high-end graphics card( PS3 vs 8800GTX). And there is less headaches also, driver issues and some obscure program that is running in the background that causes your system to lock up. I love gaming on both platforms but besides RROD( which is a big besides) I know my 360 will play the game.

By PaxtonFettel on 8/14/2007 11:13:00 AM , Rating: 2
How does this compare to the number of people signed up to steam?

RE: Steam.
By Mattz0r on 8/14/2007 12:59:03 PM , Rating: 3
Back in May Steam had 13 million users.

Shortly After
By XToneX on 8/14/2007 4:01:58 PM , Rating: 2
Shortly after, Microsoft announced that 2.4 million of those users no longer have their Xbox 360's functioning.... :oP

each month free
By knight4c on 8/15/2007 12:46:22 PM , Rating: 2
I play a couple of time a year, and when I want to play online, I just create a new gamertag and receive one month access free.

small taters.
By shiznit on 8/17/2007 8:11:45 AM , Rating: 2
Still less than World of Warcraft lol.

By elmikethemike on 8/14/07, Rating: -1
By IceTron on 8/14/07, Rating: -1
"This week I got an iPhone. This weekend I got four chargers so I can keep it charged everywhere I go and a land line so I can actually make phone calls." -- Facebook CEO Mark Zuckerberg

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