Xbox division back in red

Despite console sales being up "almost 30 percent"

Microsoft's Entertainment and Devices Division is back in the red, after reporting it's first two profitable quarters ever last year.

The Xbox division (which is also comprised of Windows Mobile and Zune) fell from a profit of $106 million to a loss of $31 million, for the third quarter ended March 31, 2009.


Despite the drop Xbox 360 was the division's strong performer, with console sales up "almost 30 percent" to 1.7 million units, says MS.

Microsoft as a whole reported overall revenue of $13.65 billion, a six percent decline from the same period last year and the first year-on-year revenue fall in the firm's history.

Expectedly, the company put the hiccup down to the world recession, in an interview with The Guardian.

"We remain more cautious than most about the state of the world economy," said Microsoft's chief financial officer Chris Liddell. "While we'd all like to think the recovery will be soon and painless, we believe it will be slow and gradual."