Xbox 360 Incites Impressive Earnings for Microsoft

According to reports, Microsoft has posted some very impressive profits for the first quarter of its fiscal year.

This period, ending September 30, saw earnings that were generally higher than most expectations expressed by the company, a surprise considering the fact that Microsoft's most anticipated product, the operating system Vista, is yet to even be released.

The official terminology for said earnings place the profits at the "high end of expectations". The reasoning behind such a bountiful windfall appears to be the success of both the Xbox 360 console and Microsoft's SQL Server 2005.

The exact numbers are the following:

• 11% rise in revenue
   
• Rise in revenue to $10.81 billion
   
• Rise in operating income to $4.47 billion

Net income also rose from $3.14 billion during last year's first quarter to $3.48 billion this period. (Source: Microsoft-watch.com)

Much of the credit is being placed with the SQL Server, but the most impressive growth may be the result of the Xbox 360 console.

With the release of the Sony Playstation 3 and Nintendo Wii inevitable in the coming weeks, it will be interesting to see if Microsoft can continue its 70% growth in its entertainment division.

According to reports, Xbox Live recently passed the 4 million mark for online subscribers, with a total of 6 million 360 units sold worldwide. That's an impressive number of Xbox owners connected to the online community, and the success of the console can largely be placed with the excellent interface and playability of the Live environment. (Source: money.cnn.com)

Microsoft expects the 360 to continue to grow, believing it can double the PS3's holiday shipments.