As part of its third quarter fiscal results (for the period ended March 31, 2008) Microsoft today revealed that its Entertainment and Devices Division (EDD), which houses its Xbox business, has once again posted a net quarterly profit. The division saw an operating profit of $89 million for the quarter, and for the nine-month period its operating income comes to $614 million, a huge improvement over the loss of $746 million during the same period one year ago. EDD head Robbie Bach had promised a profitable 2008 for Xbox and it seems the business is indeed on track.

Revenues in the Xbox division were also way up. During Q3, sales totaled $1.58 billion, an increase of 68 percent. For the nine-month period, sales were up 34 percent to $6.57 billion. In its 10-Q filing, Microsoft attributed much of the success for EDD to the Xbox 360. Microsoft has shipped a total of 7.5 million Xbox 360s in the nine months through March. In Q3 alone the company shipped 1.3 million units. Microsoft noted that "cumulative console sales surpassed 19 million during the quarter, up 74% from a year ago."

"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."

Looking ahead to the fourth quarter ending in June, Microsoft expects further increases in EDD revenue "due to increased sales of Xbox 360 consoles and related games, accessories, and services." The impending 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.