Microsoft's Entertainment and Devices division consists of the Xbox 360, Zune, Kinect and Windows Phone 7.
The division had $3.7 billion in revenue this quarter, up from $2.4 billion year-over-year.
Xbox Live memberships grew 31 percent, Xbox 360 sales were up 21 percent, and the company sold 8 million Kinects in just 60 days.
Adds Microsoft CFO Peter Klein (via Tech):
We are enthusiastic about the consumer response to our holiday lineup of products, including the launch of Kinect. The 8 million units of Kinect sensors sold in just 60 days far exceeded our expectations. The pace of business spending, combined with strong consumer demand, led to another quarter of operating margin expansion and solid earnings per share growth.