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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 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.

"And boy have we patented it!" -- Steve Jobs, Macworld 2007

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