Microsoft’s financial reports are in, and they show that the Xbox 360 is going nowhere but up. Not long ago, we saw Microsoft throw down the gauntlet to its competitors, saying that come the end of the year it would be well on top. If its newest numbers are anything to go by, they’re probably right.

The financial reports are showing that Xbox 360’s revenue is showing a 45 percent increase for the year – the device has shipped 13.7 million units this year alone, in comparison to 2010’s 10.3 million.

The firm went on to note, “EDD revenue increased primarily reflecting higher Xbox 360 platform revenue. Xbox 360 platform revenue grew $2.7 billion or 48 per cent, led by increased volumes of Xbox 360 consoles, sales of Kinect sensors, and higher Xbox Live revenue.”

Despite all the increased revenues, there have also been noticeable increases in expenditure. The report showed a 119 million dollar increase in R&D costs (a rise of 12 percent) as well as a 12 percent increase in marketing costs.

The increased marketing costs could very well account for the Xbox’s impressive sales figures – I’m sure Microsoft is feeling it was a worthy investment.There can be little doubt that the introduction of Kinect is also lending a hand in driving up sales numbers.

Overall Microsoft isn’t exactly struggling, with a total sales figure of 69.94 billion dollars for the fiscal year – a staggering 23.15 billion of which was profit.

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