Microsoft announced record revenue of $12.54 billion for the quarter ended Dec. 31, 2006, a 6% increase compared to last year, driven by Zune, X360 and its server applications. Despite increase in sales (from $1.69 billion to $2.96 billion) for the Entertainment and Devices Division, the Xbox has yet to make a profit as it currently has an operating loss of $289 million, slightly higher than last year ($286 million). With 10.4 million consoles sold Microsoft Games Division expects to turn a profit fiscal 2008 (second half of 2007).