Microsoft's entertainment division has seen a 45 per cent year-on-year revenue increase, fueled in part by booming Xbox 360 sales.
As revealed in the company's earnings report for fiscal year 2011, the Xbox 360 sold 13.7 million units in FY11, compared with 10.3 million in FY2010.
1.7 million of those were sold in the last three months, compared to 1.5 million over the same period in FY2010.
Revenue for the entire division, which includes Windows mobile and Zune, was $1.48 billion - up from $1.14 billion last year.
Microsoft also took the opportunity to point out that the Xbox 360 has been the top-selling console in the US for the past 12 months.
It's been a bumper year for Microsoft as a whole, with record revenue of $69.94 billion reported - a 12 per cent year-on-year increase.