Company-wide operating income was $9 billion, while net income was $4.4 billion.
Microsoft Office drove revenue growth for the first fiscal quarter ended September 30, but the company also reported "healthy" sales of Xbox 360.
Sales in the Xbox 360's Entertainment and Devices Division were $1.8 billion, down 6 percent year-on-year due to a tough comparison with last year's blockbuster launch of Halo 3 and hardware price reductions that took hold in early September.
Operating income was up 7 percent to $178 million due to "decreased cost of revenue and sales and marketing expenses."
The company said of the ED&D, "We expect sustained profitability for fiscal year 2009." Microsoft said decreased Xbox 360 manufacturing costs partially offset higher cost of revenue in the games division.
Xbox 360 shipments were up during the quarter to 2.2 million versus 1.8 million for the same period a year ago.