WSJ.com - Xbox Live Brings Microsoft Success in Gaming World "Microsoft Corp.'s Xbox videogame business is bleeding hundreds of millions of dollars. Its boasts of late have been along the uninspiring lines of "We're Number 2!" in sales of its game consoles.
But Xbox Live, Microsoft's online videogame service, has surpassed expectations with 350,000 subscribers signed up just three months after launch. And the rapid increase has helped the company break new ground in the industry, a coup that has competitors on the defensive, analysts say.
"The success of Xbox Live has caught everyone by surprise, including Microsoft," said Matt Rosoff, an analyst with Directions on Microsoft, a Kirkland, Wash.-based independent research firm that specializes in Microsoft."