Xbox Live sales Top $1 Billion

Microsoft's Xbox Live online video game platform has generated an estimated $1 billion in revenue for the year ending on 30 June, Business Week reports.

The company said that the $1 billion revenue mark was reached thanks to the rise in sales of extra game levels, avatars accessories and films.

The software giant informed that almost half of the 25 million Xbox Live users had paid an annual subscription fee to play online games like 'Call of Duty: Modern Warfare 2', amassing $600 million in revenue.

In an e-mailed statement to Business Week, Xbox COO Dennis Durkin reported that the sale of TV shows and films topped subscription revenue for the first time.

Speaking to Business week, Matt Rosoff, an analyst with research firm Directions, said: “Xbox Live has helped sell a lot of consoles and created a lot of loyalty. Everyone has been talking about Microsoft’s inability to innovate, but this is a pretty good example where they have innovated.”