A research report from In-Stat predicts Xbox Live will generate a billion dollars annually by 2013. According to Edge, Microsoft announced last July that it had reached the billion dollar mark since launching the service in 2006. The $1 billion estimate includes advertising, download revenue and subscriptions.
In-Stat believes that all three current console manufacturers will continue staking out an online strategy to "generate incremental revenue and promote brand loyalty." Considering there's a growing theory that we may not have many more console generations, figuring out a stable online platform is probably best for all parties.