Microsoft‘s Xbox business has been smooth sailing of late, and the lowered cost of production has enabled the company to introduce its new slim model recently. That said, in the most recent quarter ended June 30, the Entertainment and Devices Division (EDD), which houses Xbox, PC consumer and Zune, saw its operating loss  increase 22 percent year-over-year to $172 million. Sales, however, jumped 27 percent to $1.6 billion.

It’s worth noting that on a 12-month basis, EDD revenues were essentially flat, but net income soared 529 percent to $679 million. In the quarter, Microsoft sold 1.5 million Xbox 360 consoles compared to 1.2 million a year ago, thanks to sales of the new slimmer Xbox 360. But for the fiscal year, Microsoft shipped only 10.3 million consoles compared to 11.2 million a year ago. See Industry Gamers for more.

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