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Xbox Live not Microsoft's killer app?

Reuters suggest that Xbox Live may not be the killer app for the 360 as Microsoft both hopes and promotes as such. Popular analyst David Cole believes the Xbox platform so far has only appealed to "a solid base of hardcore gamers who are drawn to its first person shooters." He calls the Live user segment "small" noting that of the 6 million gamers that purchased Halo 2, only a third of those ventured online.

But that was two years ago, and Microsoft openly admits to a mere 10% Live adoption rate for the original Xbox. Furthermore, the company states that "more than 50 percent of all Xbox 360s are taken online," implying that online play is becoming a gaming necessity not just for the hardcore, but the casual as well.

Still, Cole remains unconvinced. He says, "Games that do not depend on Web play -- such as some roll-playing [sic] games -- are most important ... The key to the 360's overall success is what they'll offer consumers who don't go online."

Tags: Xbox Live, XboxLive

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