Microsoft Rides Kinect To Record Revenues

Microsoft's entertainment and devices division racked up $20 billion in revenues over the 2010 holiday fiscal quarter thanks to the new controller-free game experience.

After recording large losses just two quarters ago, the Xbox 360-driven group posted a record-breaking 55 percent growth over the critical holiday season. Microsoft credits the jump to selling 6.3 million Xbox 360s, a 30 percent growth in Xbox Live subscribers, and burning through 8 million Kinect peripherals in just 60 days. Not bad for a console many predicted would give way to the PlayStation 3 in its later years.

Microsoft believes this positive trend will continue, projecting a 40 percent revenue growth for the 2011 fiscal year.

[Source: GamaSutra]