Microsoft is continuing to make strides towards turning the Xbox into a profitable product thanks to a strong rise in Q4 sales.
Xbox sales rose by 22 per cent in the period, narrowing the company’s losses in its home entertainment division to a still hefty $179 million. This compares to the $340 million loss the company made in the same quarter last year.
“I think the figures, to some degree, validate Microsoft’s business model in getting into the console space in the first place,” industry analyst Matt Rosoff told CNN. “That’s a pretty big jump and an important thing for Microsoft. That business has been growing most slowly.”
Overall, Microsoft enjoyed a 37 per cent jump in fourth quarter profits, enjoying a net income of $3.7 billion, up from $2.69 billion a year ago.