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11.2 million Xbox 360s shipped in FY09

But sales down in the last few months.

Microsoft shipped 11.2 million Xbox 360 units over the course of the last financial year.

That's more than in 2008 - back then the figure was 8.7 million. Console sales and Xbox Live revenues were also up.

However, 360 and PC gaming revenues were down by $161 million, or 3 per cent. Microsoft's financial report puts the drop down to Xbox 360 price cuts.

Overall revenue for the Entertainment and Devices Division (which covers PC gaming, 360, Zune and Mediaroom) was down by 5.6 per cent ($453 million). Operating income fell 66 per cent ($328 million).

In the last quarter alone, gaming revenues were down by 12 per cent ($110 million), "primarily as a result of decreased Xbox 360 console sales" and again, price cuts. A rise in Xbox Live revenues helped to make up for it though, as did the fact the company spent 30 per cent less on marketing - that's $107 million worth of Xbox 360-branded beachballs.

Microsoft Corp.'s total profit dropped by 18 per cent to reach $14.57 billion for the year. In the last quarter, profits stood at $3.09 - a fall of 29 per cent.