Microsoft (MSFT) Says XBox Live May Double

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If the Microsoft (NASDAQ: MSFT) Xbox 360 will stop overheating, the company believes that it can double the number of Xbox Live users.

The Live product has 10 million users now who spend $50 a year to play video games online and also download movies and games over the web. The company told Reuters "We want to take the system to the next level. We want to get to 20 million (users) quicker than we got to 10 million."

Hitting that higher number may be very difficult. Xbox trailed both Sony (NYSE: SNE) PS3, and Nintendo Wii sales in the US last month. The product has had reliability problems.

Microsoft also sided with the Toshiba HD DVD systems for playback on its game console. That format is now dead, beaten by Sony’s Blu-ray offering. How long will it take Microsoft to get Blu-ray working on the Xbox. It won’t be tomorrow.

Douglas A. McIntyre