Xbox Live reportedly nets Microsoft $1.2bn

The Xbox platform is at last producing major revenues for Microsoft

Microsoft has made up to $1.2bn (£791m) from its Xbox Live service this year, according to a Bloomberg report.

An email from Xbox chief operating officer Dennis Durkin confirmed that sales of products like movie and TV show downloads had overtaken subscription revenues, accounting for some $600m (£395m).

Microsoft has already confirmed that subscriptions for the platform now total more than $600m.

"Xbox Live has helped sell a lot of consoles and created a lot of loyalty," said Matt Rosoff, an analyst at Directions on Microsoft.

"Everyone has been talking about Microsoft's inability to innovate, but this is a pretty good example where they have innovated. They timed it just right with this one."

Microsoft has hinted that the Xbox platform, into which it has ploughed billions in developments costs, has been proving more valuable, but Roscoff warned that it may not extend to other systems.

Intel has already announced major plans for so-called smart TVs that use built-in processors to merge internet and broadcast, and Google is joining in, but Microsoft is largely out of the loop and offers limited developer support in comparison.