Microsoft reports that Xbox Live now has around 46 million members worldwide.
This, according to the firm's Earnings Release for FY13 Q3, represents an 18 per cent increase from the prior year period.
Microsoft's Entertainment and Devices Division posted revenue of $2.53 billion, an increase of 56 per cent from the prior year period.
MS EDD covers Xbox 360 and its games and peripherals, Xbox Live, Mediaroom, Skype and Windows Phone.
Microsoft sold 1.3 million Xbox 360s during the quarter, down nine per cent from the same period a year earlier.
During the earning call, Microsoft chief financial officer Peter Klein said of Xbox Live, "Clearly there's a lot of momentum, and with E3 just around the corner we look forward to showing more shortly."
It has been heavily rumoured that Microsoft will reveal its next-generation Xbox platform at an as-yet-unannounced event in May.
Microsoft Corp. logged revenue of $20.49 billion for the quarter ended March 31, 2013. Operating income, net income, and diluted earnings per share for the quarter were $7.61 billion, $6.06 billion, and $0.72 per share.