Microsoft reported a drop in profit for its fiscal second quarter caused by the delayed release of its new Vista operating system , but sales beat analyst expectations thanks to strong sales of its Xbox 360 game console.
The world's biggest software company announced net profit of $2.63 billion in the three months ending December, compared to $3.48 billion the previous year.
Microsoft saw sales rise 6% on the same quarter the previous year to $12.54 billion, with sales in its entertainment division up 76%.
Microsoft employs over 1,200 full time employees and 700 full-time contract staff in Dublin.
'Results this quarter exceeded our expectations across the board, with revenue growth at or above our high-end guidance for all divisions,' said Microsoft's chief financial officer Chris Liddell.
Sales and profit would have been greater if not for the delayed release of Vista, which was rolled out for businesses late last year and will be available for home computers at the end of January, according to Microsoft.
Microsoft deferred more than $1.6 billion in revenue from year-end sales of computers with guaranteed upgrades to the Vista operating system, according to Liddell.
Microsoft's entertainment division saw sales rise 76% over the same quarter a year earlier due to popularity of its Xbox 360 video game consoles and the "Gears of War" software tailored to the system.
Microsoft said it has sold 10.4 million Xbox 360 consoles since it was launched in November of 2005 and it expects to sell 12 million by the end of its financial year in June.
Microsoft has yet to make a profit on Xbox, which it launched in November 2001 to block Japanese electronics titan Sony from usurping the PCs position in the home with its PlayStation video game consoles.
Microsoft also reported improved advertising revenues at its MSN and Windows Live online services, an area in which it has fallen far behind Internet rivals.
