its the entertainment division which includes the Zune, the Zune probably is the one that is really making them money.

I thought Zune wasn't selling well.
good to see xbox division making money.

I also thought Zune wasn't selling... It never seems to sell. Good to see Xbox profitable!

Everything i've heard about Zune sales is bad. Looks like the Xbox 360 is starting to make them money. Hopefully this figure will allow them to make a deeper price cut without pissing off shareholders too much.

The Zune has picked up in recent months and is slowly gaining market share. This makes 500 million net income for the past two quarters for ms entertainment division.

Besides the Zune sales they also have xbox live subscriptions, plus XBLA sales, sales of games from their game studios, and licenses from third party devs. Even all that annoying advertising on XBL contributes. I don't know what the exact profit/loss is from each 360, but they've got plenty of other things making money so the future looks bright for them.

Great to see them making a profit for 2 quarters in a row. I wonder how many of these they need to earn back the billions they invested so far.

I saw that Media Center platforms were included in their entertainment division as well as Windows tv and home. I wonder how the 360 itself did.

Xboxlive + Xobx360 GAMES

Zune only started selling once they lowered in to ridiculously cheap price.