Microsoft’s Xbox Division Posts $89 million profit in Q3

Microsoft announced in its 10-Q report that its Entertainment and Devices Division, home to the Xbox, turned an $89 million dollar profit during the fiscal quarter (Q3) ending March 31. During the same quarter one year ago, the division lost $746 million. The division had total sales of $1.58 billion in the third quarter, an increase in 68% from the a year ago. Microsoft EDD division has also experienced revenue growth over the past 9 months, up 34% to 6.58 $billion.

Microsoft is attributing most of the gains to the success of the Xbox 360, claiming that it sold 1.3 millions units in Q3, 7.5 million units in the past nine months, and 19 million overall.

Microsoft stated in the report that,

“During the three months ended March 31, 2008, Xbox platform and PC game revenue increased $418 million or 85% primarily as a result of increased Xbox 360 console sales, Xbox 360 video game sales, and Xbox Live revenue,” the company said. “Xbox platform and PC game revenue increased $1.4 billion or 42% during the nine months ended March 31, 2008, as a result of increased Xbox 360 console sales, video game sales led by Halo 3, Xbox Live revenue, and Xbox 360 accessory sales.”

The upcoming release of GTA IV from Rockstar Games will no doubt help boost Xbox 360 sales as well. Overall in Q3, Microsoft reported revenues of $14.45 billion and operating income of $4.41 billion.