Microsoft just released its third quarter earnings today and the company's profits are up 31 percent from last year's. According to Microsoft CFO Peter Klein, “Consumers are purchasing Office 2010, Xbox and Kinect at tremendous rates," which accounts for the bulk of Microsoft's quarterly win.
“We delivered strong financial results despite a mixed PC environment, which demonstrates the strength and breadth of our businesses," Klein said in a statement.
The money from the Xbox 360 platform revenue grew to $712 million. That's 69 percent better than last year. Microsoft credits Kinect, saying that the hands-free controller is “the fastest-selling consumer electronics device in history.” The firm shipped 2.7 million Xbox 360 consoles and 2.4 million Kinect sensors during the third quarter of fiscal year 2011, compared with 1.5 million Xbox 360 consoles during the third quarter of 2010. That brings total 360 sales up to 53.6 million.
As a whole, Microsoft's Entertainment and Devices Division, which includes Xbox 360, XBL, and Kinect, grew profits 60 percent over last year. Xbox 360 video game revenue increased as well, due to the sales of Halo: Reach and Kinect games.
But it's not all good news in Microsoft land as the company's Online Services Division continues to drain cash. Losses grew 2 percent to $726 million. That would be, presumably because search engine Bing and other M'soft web properties aren't doing as well as the company would like. Even more troubling: Revenue in the Window's division fell, signaling trouble in the company's core business, and resulting in a stock fall of 55 cents today.