Microsoft Xbox division increases revenue by 30 percent

Microsoft ended its fiscal year on June 30 and today reports making record numbers for their fourth quarter and their entire year. The gaming division, however, had some unusual ups and downs.

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Microsoft ended its fiscal year on June 30 and today reports making record numbers for their fourth quarter and their entire year. The gaming division, however, had some unusual ups and downs.

For the quarter, things looked good. Microsoft sold 1.5 million consoles in Q4 versus the 1.2 million they sold during the same time last year. Revenues for the Entertainment and Devices Division (which houses all Xbox-related stuff) were up 30 percent to $228 million in the quarter.

From the full-year perspective, however, the gaming division slipped. Sales of consoles dropped to 10.3 million compared to fiscal year 2009's 11.2 million, while revenues for both the Xbox and PC market shrank by $12 million with fewer consoles sold.

The silver lining here is that revenues from Xbox Live are booming. During the earnings call, Microsoft said that for the first time ever, Xbox Live market revenue exceeded the revenues they get from Xbox Live subscriptions. With over 25 million Xbox Live members, it's easy to imagine how that happened.

Microsoft hopes to keep the money train going with Kinect and the new Windows 7 phone due out this holiday season. Kinect is due out November 4 for $150.