Microsoft said it shipped 1.8 million Xbox 360 consoles in the quarter, compared to 900,000 in the same period a year ago. The numbers are a stark contrast to the fourth quarter, during which Xbox 360 shipments plunged 60%.
The surge helped Microsoft's Entertainment and Devices division post a first-quarter profit of $165 million on revenue of $1.9 billion, compared to a loss of $142 million on sales of $1.01 billion in the same period a year ago.
Halo 3 has, to date, broken a number of gaming industry records, including the mark for first day sales. The title pulled in $170 million on its Sept. 25 launch date.
On the downside, Microsoft said that cost of revenue for its gaming division increased 99%, or $584 million, in part because of a jump in warranty-related expenses. The company in the fourth quarter took a $1.06 billion charge against earnings to cover the cost of extending the warranty period for the Xbox 360.
Microsoft conceded that the consoles suffer from frequent hardware failures and said it's working to fix the problem.
Overall, Microsoft said its first-quarter revenue increased 27% year-over-year to $13.76 billion. Net income climbed 23% to $4.3 billion, while earnings per share increased 29% to 45 cents.
Achieving Successful Coexistence Between Notes and Microsoft Platforms
Learn about the key migration and coexistence challenges youżll face when considering migration from IBM Lotus Notes to Microsoft Exchange and Microsoft SharePoint Server. Get best practices for planning and executing a successful coexistence strategy, and discover how you can ensure seamless coexistence between the Lotus and Microsoft environments.
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