Xbox doubles profit in first quarter

Favorable reviews of Windows 7 isn’t the only good news for Microsoft this month – revenue for the company’s Entertainment and Devices division totaled $312 million, up 96% from last year. With 2.1 million consoles, Microsoft has sold roughly the same number of Xbox 360s in fiscal Q1 2010 as it did in fiscal Q1 2009.

Instead, much of the revenue increase is attributable to reduced production costs for the videogame console. Said a Microsoft representative, “Cost of revenue decreased $103 million or 10%, primarily due to decreased Xbox 360 platform costs, offset in part by increased royalties to partners related to increased Xbox Live transactions.”  So, it looks like sales of Microsoft’s winning console are remaining high, with the company all the while working at creating the system in less expensive, more efficient ways.