Microsoft has issued its earnings report for Q1 of its fiscal year 2011, and things are looking good for its gaming division. The company reported revenue of $16.20 billion for the period, which ended on September 30. This amounts to a 25 percent increase over Q1 FY 20111 overall.

When it comes to Xbox 360, the console was cited as a top performer, alongside Windows 7 and Office 2010. In fact, Microsoft reports that sales are up 38 percent overall, compared with the same quarter last year, "outselling every competing console in the U.S. for each of the past four months," it gloats.

Diving into the numbers, Microsoft's Entertainment and Devices Division (home to Xbox, Zune, and Windows Phone 7) benefited from a 33 percent rise in revenue from Xbox 360 sales over Q1 FY 2010, to the tune of $409 million. Shipments of the console to retailers totaled 2.8 million units for the quarter, up from 2.1 million during the same period last year.

Revenue from software sales also increased, bolstered by (what else?) Halo: Reach. The Bungie title generated a whopping $350 million for Microsoft in the quarter -- a number made more impressive by the fact that, having launched September 14, that revenue resulted from only 17 days of the game's sales. No wonder Microsoft is considering releasing Halo games on a more frequent basis.

This article was originally published on Joystiq.

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