[Clemens]

That Xbox Kinect was big business for Microsoft (MSFT) the last quarter was obvious as Microsoft announced selling 8 million copies of the Kinect Sensor not too long ago. However, to their share-holders, Microsoft just announced that Kinect's launch "far exceeded our expectations." With that, establishing that they actually made a buck or two via Kinect.

Dominated by Xbox-related products, the reveneus in Microsof'ts Entertainment and Devices Division were up 55 percent to $3.6 billion for the quarter ending December 31, 2010.


Entertainment and Devices Division
Still in the red two quarters ago, is now a pushing force behind Microsoft's total profits of $6.63b. In total, the division generated $679 million in profit for the company in the recently concluded quarter. That's up 86 percent from the same period a year ago.
Xbox 360 and Kinect
Microsoft specifically cited sales of 6.3 million Xbox 360's during holiday season and 30 percent growth in the number of Xbox Live subscribers as drivers for the revenue growth. It seems that people are getting more and more familiar with buying downloadable content via the digital Xbox channel. Furthemore, Microsoft pointed out the impact of the Kinect sensor's launch on its bottom line far exceeded expectations.

Microsoft sees the division's growth continuing in the near future, with projected revenues for the 2011 fiscal year as a whole up 40 percent over 2010.

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Source: Microsoft

From 123 Kinect Article: Xbox Kinect pushing Microsoft's Quarterly results