Xbox reports Q2 profit

Microsoft’s Xbox games team has announced an operating profit of $357 million for its 2008 second fiscal quarter – up from a $302 million loss the year before.

According to Next-Gen, Operating income within the Entertainment and Devices division primarily increased because of increased revenue, decreased cost of revenue and decreased marketing and sales expenses.

Lower manufacturing costs for Xbox 360 hardware pushed down the cost of revenue down $523 million, or 22 percent, during the quarter.

Total revenues for the EDD, were $3.06 billion, up from $3 billion for the same period a year prior.

Overall, Microsoft posted fiscal Q2 sales of $16.37 billion (up 30 percent year-on-year), operating income of $6.48 billion (up 87 percent) and earnings per share of 50 cents (up 92 percent).