Microsoft has reported flat year-on-year sales for its Entertainment and Devices Division, but the unit’s operating income almost doubled during the first quarter of its fiscal year ended September 30, 2009.

Revenues for the division, which covers the Xbox 360 and Zune platforms as well as PC and online games, totalled $1.89 billion (£1.16b), almost identical to a year earlier, while operating income rose from $159 million to $312 million (£191.3m).

“The results of the first quarter were strong, particularly on an adjusted earnings per share basis, primarily as a result of two main factors; consumer demand for our Windows and Xbox products combined with excellent cost controls,” chief financial officer Christopher Liddell said in an earnings call.

Bill Koefoed, the firm’s general manager of investor relations, noted that console revenue was impacted by price cuts and volume decline, but that overall gaming revenue was up almost $100 million (£61.3m).

“With a worldwide install base of almost 34 million consoles, Xbox 360 continues to lead the industry with an 8.7 software title attach rate,” he said. “Xbox Live also contributed strongly to the quarter's performance, with revenue growth in excess of 50 per cent. We believe consumers will be excited by the richer multi-media enhancements and integration with social networks that we are delivering this fall.”

Company-wide revenue declined 14 per cent year-on-year to $12.92 billion (£7.92b). Operating income and net income totalled $4.48 billion (£2.75b) and $3.57 billion (£2.19b), down 25 per cent and 18 per cent respectively.

The company’s earnings release can be viewed here.