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.

"If they're going to pirate somebody, we want it to be us rather than somebody else." -- Microsoft Business Group President Jeff Raikes

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