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Microsoft says earnings are on the rise, thanks to Xbox Live

Microsoft today reported earnings for its most recent fiscal quarter, and though the company's sales and profits were up year-over-year they fell short of some market analysts' expectations.

Microsoft today reported earnings for its most recent fiscal quarter, and though the company's sales and profits were up year-over-year they fell short of some market analysts' expectations.

The company as a whole reported $4.8 billion in net profits on $22 billion in sales for the three months ending March 31st, which is a good bit better profit than the $3.75 billion it reaped on $20.5 billion in sales during the same period last year. 

Game industry types will mostly care about the company's video game business, and Microsoft claims that gaming revenue (which includes sales of Xbox consoles) increased 4 percent year-over-year. 

Meanwhile, revenue from Xbox software and services (including Xbox Live) grew 7 percent, "driven by continued adoption of digital distribution" and sales of Xbox games.

In a slideshow presentation (excerpted below) published for investors, Microsoft chalks its gaming revenue growth up to the growth of Xbox Live; it goes on to claim that the ranks of Xbox Live users grew 13 percent year-over-year, and indeed the company reports 52 million active Xbox Live accounts this quarter, up from 46 million a year ago.

However, it's also worth pointing out that the number of active Xbox Live accounts appears to have slipped a bit from Microsoft's previous fiscal quarter (which includes the holiday season), when the company reportedly had 55 million active Xbox Live users.

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