Microsoft has reportedly surpassed the $1 billion (just under R7.7 billion) mark in revenue generated by its Xbox Live online video game service for its 2010 fiscal year.

According to Bloomberg News this is a first for the company, reaching this milestone in a single fiscal year assisted by sales of movies, avatar accessories as well as extra game levels.

The report stated that approximately half the Xbox Live service’s 25 million users paid an annual fee to play games online such as Call of Duty: Modern Warfare 2 in the financial year that ended on 30 June, which amounts to about $600 million (about R4.62 billion).

Sales of products including DLC for games as well as movie and TV show downloads exceeded subscription revenue for the first time, suggesting that the total revenue is over $1.2 billion (over R9.2 billion).