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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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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.

"We can't expect users to use common sense. That would eliminate the need for all sorts of legislation, committees, oversight and lawyers." -- Christopher Jennings

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