Microsoft has posted its financial year 2013 second quarter results (FY13 Q2), reporting the their highest quarterly revenue at US$21.5-billion. However, the Entertainment and Devices Division (under which Xbox operates) posted revenue of $3.77 billion, a decrease of 11% from the prior year period.
It must be noted that Microsoft’s Windows 8 tablet PC’s and phones fall under this division as well. Sales and marketing expenses increased $547 million or 15%, primarily reflecting advertising of Windows 8 and Surface.
Research and development expenses increased $157 million or 7%, due mainly to higher headcount-related expenses, primarily related to the Entertainment and Devices Division. It is likely that some of this R&D money went towards the next-generation Xbox console, codenamed Durango.
According to Microsoft, Xbox 360 continues to be the top-selling console in the United States.