The division took in $1.929 billion in revenue for the quarter, a 90.8% year-over-year increase. Halo 3's $300 million first-week sales and its console-selling hype undoubtedly contributed heavily toward this figure.

The first quarter profits are a good sign for Microsoft, indicating the division is on its way toward a profitable fiscal year for the division overall--a goal Microsoft has been firm in reiterating. Absorbing the $1.06 billion in "red ring of death" repair costs during the last quarter of last fiscal year gave the company a huge loss overall, but paved the way for the new fiscal year and quarter to begin without the burden of repair costs.