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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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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.

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