Microsoft ships 3.9 million Xbox Ones in launch quarter

Microsoft just reported strong second fiscal quarter results, with help from strong performance from the newly-launched Xbox One. Microsoft said it shipped 3.9 million Xbox One consoles during the three months ended December 31. The company also shifted 3.5 million units of its aging Xbox 360 to retailers in the quarter. More than 3 million of those Xbox One consoles were sold to consumers during the period, according to an earlier announcement. For the three months ending December 31, its Devices and Consumer Hardware division, which houses the lion's share of its video game console business, saw revenues of $4.7 billion -- a significant year-on-year leap, compared with revenues of $2.8 billion for the same period in 2012. "[...] Our Devices and Consumer segment had a great holiday quarter ... The investments we are making in devices and services that deliver high-value experiences to our customers, and the work we are doing with our partners, are driving strong results and positioning us well for long-term growth," said CEO Steve Ballmer in the company's press release. Overall, the company posted record revenue of $24.52 billion for the quarter, resulting in net income of $6.56 billion for the period. UPDATE: In Microsoft's earnings call's Q&A session, one questioner observed that the increase in revenues from hardware roughly matched the increase in cost of goods for hardware -- implying that while the company may be selling lots of hardware it isn't generating much profit. Microsoft chief financial officer Amy Hood essentially confirmed this would be the case for some time, saying: "We'll continue to be in launch mode for Xbox One... [and] add and expand markets over the course of the year. I would continue to think of our investment in being the leading console extending."