Microsoft posted unaudited operating income for its first quarter ended September 30 of $165 million in the Entertainment and Devices Division, compared to a loss last year of $142 million.Microsoft has been reiterating that its Xbox business will be profitable throughout this entire fiscal year, a feat yet to be seen in Microsoft's videogame business.Strong demand for Halo 3 and Xbox 360 hardware drove the division’s numbers during the quarter, according to Microsoft. In its first day, Halo 3 in the US alone generated $170 million in sales when it launched September 25. First-week sales were $300 million globally, as the Bungie-developed title sold 3.3 million units in the US during its debut month, according to NPD Group.Revenues for the division were up 91 percent to $1.93 billion.Overall, Microsoft revenues were up 27 percent year-on-year to $13.8 billion, beating the guidance of $12.4-$12.6 billion. Operating income was $5.9 billion, similarly exceeding the guidance of $5.0-$5.2 billion.During the quarter, Microsoft said it sold 1.8 million Xbox 360 consoles, with record attach rates during the quarter in the US.“We feel very good about our position going into the holidays,” said CFO Chris Liddell regarding the games business during a conference call.Also part of the Entertainment and Devices Division is the Zune music player, which we will see at the new lineup this holiday season.Microsoft expects total company revenues in fiscal 2008 to be $58.8 billion to $59.7 billion, with operating income of $23.3 billion to $23.7 billion.
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