Kinect and 360 earn record-high profits for Microsoft

Third quarter profits for Microsoft hit record highs, largely thanks to the success of Kinect and the 360. Microsoft's Entertainment & Devices Division, which handles their gaming interests, raked in $1.94 billion in the first three months of the year, a 60% improvement over last year's numbers.

The 360 install base grew to 53 million, with the addition of 2.7 million new units sold during the quarter. Microsoft sold 2.4 million Kinects during the same period of time, bringing the peripheral's total sales to 10.5 million.

Chief Financial Officer Peter Klein said, “Consumers are purchasing Office 2010, Xbox and Kinect at tremendous rates, and businesses of all sizes are purchasing Microsoft platforms and applications.” The company predicts that profits will increase by as much as 25% next quarter.