Xbox division posts another quarter of growth

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Microsoft's Entertainment and Devices Division has reported another annual revenue increase, though falling Xbox 360 sales hint that perhaps thoughts in some quarters have turned to the next generation.

Revenue for the three months ending September 30th hit $1.96bn, up nine per cent on last year's $1.8bn.

Xbox revenue in isolation was up year-on-year, with sales at its Xbox operation climbing seven per cent. Xbox Live was singled out for particular credit, where revenue soared 19 per cent.

So strong was the digital performance that it offset in both hardware and software sales. 2.3m Xbox 360 consoles were sold in the period compared to 2.8m in 2010.

Lifetime Xbox 360 console sales now stand at 57.6m units

Overall Microsoft reported $5.74bn in profit (up six per cent) and $17.37 of revenue (up seven per cent).