On the Call: Microsoft CFO Peter Klein

Microsoft Corp. said Thursday that its Xbox 360 video game console, Kinect motion-sensing game controller and Xbox Live online games service contributed to record revenue growth in the fourth quarter.

During a conference call to discuss its quarterly results, an analyst asked Chief Financial Officer Peter Klein about Xbox Live in particular, which Klein said now has about 35 million members.

QUESTION: Could you talk about money-making trends you’re seeing from Xbox Live?

ANSWER: Yes, no, it’s really been fantastic. As we have grown the subscriber base, there’s actually a couple of revenue streams. There’s the subscription revenue stream and then there’s the transactional revenue stream for people who actively engage with the service and that can buy purchases while they are engaged in that. And that really helps to accelerate the monetization of that business and that is a really, really amazing long-term opportunity for us particularly as we continue to take share of just the whole console platform.