These past couple of years have been good for Microsoft and the Xbox, but still, that doesn’t mean that their entertainment division is doing well in terms of profit. At the start of the year, Microsoft’s Entertainment and Devices Division, which houses the Xbox and the Zune, reported a $142 million loss, but in this last quarter, the division made $165 million, making it the first time since 2005 that the Entertainment division has brought profit to the company.

Microsoft may be thankful to Halo 3 for this jump as many consider it the main catalyst for the %20+ profit increase, but unfortunately, it appears that now Bungie will be “free” to choose, once again, their platform of choice for future game releases.

So once again, it appears that Halo became Microsoft’s “Pokemon” and saved them from another red quarter, but unlike Nintendo, who manage to develop other incredibly profitable franchises, I don’t see any other exclusive franchises being developed for their system. Sure, they are starting to see some “love” from foreign developers such as Square Enix, but without more key franchises the Entertainment division’s future might not be so bright.

[Via Ars]

Related posts:

Xbox Turns a Profit
Microsoft Hawking Halo Script for $10M
Microsoft sued for alleged Halo patent infringement
Estimated Cost of the major gaming consoles
9/25/07 – The Biggest Day in Entertainment History

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