That number is globally across 35 countries
Microsoft has confirmed that they have reached over 35 million Xbox Live users. That is 35 million across 35 different countries.
Xbox Live still continues to grow as the service added 5 million new users since last January; which means that the service continues to grow. The company is also planning to launch in 9 additional countries before the end of the year if all goes well.
Despite the number of users on Xbox Live, the company is quick to point out that subscription dollars are not the primary revenue stream of the service. Microsoft is still claiming that they are making more dollars from the transaction space than they are from subscriptions, which, of course, stands to reason.
Microsoft has not actually broken down their claim of the 35 million number. We are left to wonder how many of these 35 million are actually Gold subscribers that are paying for the service. Since Microsoft refuses to release these numbers we are left wondering, that is certain.