Microsoft has reported significant growth for its Entertainment and Devices Division - under which Xbox sits - along with huge growth for Xbox Live.
EED revenues increased 8 per cent, or $134 million, during the fiscal Q4 ended June 30, 2013, which Microsoft said was "primarily due to higher Windows Phone revenue, offset in part by lower Xbox 360 platform revenue".
Despite Xbox 360 declines, with 1 million shipped in the final quarter (down 100k units on the prior year), the firm reported Xbox Live growth of "nearly" 20 per cent.
Microsoft Corporation posted revenues of almost $20 billion for quarter, with profits topping $6 billion.
"While our fourth quarter results were impacted by the decline in the PC market, we continue to see strong demand for our enterprise and cloud offerings, resulting in a record unearned revenue balance this quarter," said Microsoft CEO Steve Ballmer.
"We also saw increasing consumer demand for services like Office 365, Outlook.com, Skype, and Xbox LIVE," he added. "We are working hard to deliver compelling new devices and high value experiences from Microsoft and our partners in the coming months, including new Windows 8.1 tablets and PCs."
Windows chief Julie Larson-Green was recently named boss of the Devices and Studios Engineering Group, which encompasses all hardware development, including Xbox, following the surprise departure of Don Mattrick.
This came as part of a sweeping restructuring plan designed to enable greater innovation and efficiency in the face of fierce competition in the technology sector.
Ballmer said today, "Our new products and the strategic realignment we announced last week position us well for long-term success, as we focus our energy and resources on creating a family of devices and services for individuals and businesses that empower people around the globe at home, at work and on the go, for the activities they value the most."