Xbox Live to Generate Annual Revenue of $1 Billion by 2013, says Study

In-Stat today predicted that online game subscriptions will grow during the global recession due to increased awareness of online gaming and a sizable installed base of consoles. They predicted that online subscribers to consoles and handhelds will grow 20.4% between 2005 and 2013.

"Unit sales of game consoles will decline moving into 2010, as a result of both the weak economy and a peak in each vendor's video game console lifecycle," says Stephanie Ethier, In-Stat analyst. "The key vendors, including Microsoft, Sony and Nintendo, are staking out their online strategy to generate incremental revenue and promote brand loyalty."

By 2013, In-Stat predicts that Xbox Live service will produce revenue of over $1 billion annually, leading other other console online services. They expect worldwide broadband subscriptions to be 562 million by 2009 and In-Stat states that the pervasiveness of local networks, broadband and Wi-Fi is pushing online gamer subscriber rates.