Kinect sales boost Microsoft revenues

Microsoft has reported record revenues of $19.9bn (£12.5bn) for its second financial quarter, ending 31 December 2010, up 5% from last year, as sales of its motion sensor controller system Kinect took off.

Microsoft Kinect: strong sales for the XBox accessory
Microsoft Kinect: strong sales for the XBox accessory

However, pre-tax profit has fallen to $8.5bn, compared to $8.9bn for the same period last year.

Microsoft's Entertainment and Devices division grew by 55% to $3.6bn. The Kinect launched in November last year, boosting sales of Xbox 360 consoles, Xbox Live subscriptions and Xbox games.

Peter Klein, chief financial officer at Microsoft, said: "We are enthusiastic about the consumer response to our holiday line-up of products, including the launch of Kinect. The eight million units of Kinect sensors sold in just 60 days far exceeded our expectations."

Microsoft Business division revenue increased 24% year on year to $6bn. It reported sales of Office 2010 licences for the quarter exceeded expectations, making it the fastest selling consumer version of Office in its history, with sales more than 50% higher than Office 2007 for the equivalent period.

However, revenue from its Windows & Windows Live division fell by 30% to $5bn. The company said that its Windows 7 operating system, which launched a year ago, has been its fasted selling yet.

The company did not disclose how much revenue was coming in from its Windows 7 phone system, which launched in October last year.


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