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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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By Alexstarfire on 8/14/2007 2:39:27 PM , Rating: 0
Both are a rip off if you ask me. Sure as a Gold Member you may get those demos a week or so early and be able to play online, from what I read in the comments, but that's not something you should pay extra for. Let's see, you pay for the console, you pay for the game, you pay for INTERNET, and then Microsoft is making you pay to USE the internet. That just sounds stupid in my book. I think paying to be able to use the internet is stupid, just as I think paying each month to play MMORPGs is stupid. You pay for so much already, including the multiplayer option when you buy the game. If the game is set to use multiplayer then why should you pay AGAIN to be able to use it?


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