Magid: Almost a Third of 360 Owners Don't Know Xbox Live Arcade Exists

August 13, 2007 | By: Evan Narcisse

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Today we present to you the first in a series of exclusive video game industry research columns from Frank N. Magid Associates. In this first segment, Magid points out that although a large number of Xbox 360 owners play online, nearly a third are not at all familiar with Xbox Live Arcade.

Xbox Live Arcade has gotten a lot of buzz with consumers, as well as within the industry. The press has also covered Xbox Live Arcade service extensively. Many gamers have heralded Microsoft's commitment to online gaming and online tools and content.

But is Xbox Live Arcade (XBLA) really living up to the buzz? What does the future hold for XBLA?

We present data here from a national online survey of 1800 U.S. households, of which 149 owned an Xbox 360, over 64% of whom indicate they play games online with their Xbox 360. We also present data that shows that 70% of owners have used Xbox Live Arcade � both to try free games, as well as to buy games. However, the larger group (42%) have only tried out free games. While 28% have actually bought a game at XBLA

But remarkably, 30% of Xbox 360 owners report that they have never even heard of XBLA. Considering these buyers of the Xbox 360 are serious, if not hard-core gamers, and all the attention given to XBLA, it is surprising to us that still almost a third of Xbox owners are not familiar with XBLA.

Over the next year we will see if XBLA usage grows, particularly in terms of game purchase, as well as closing the "awareness gap."

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Mike Vorhaus is the Managing Director at Frank N. Magid Associates, a world leader in research-based consultation that has provided strategic insight and direction for clients in 37 countries around the world.