Microsoft Corp. this week recorded a profit in the Xbox business amid strong demand for the hardware.

The Entertainment and Devices division, which includes the Xbox business, recorded revenue of $1.48 billion, an increase of $1.41 billion one year earlier.

The division held operating profit of $32 million compared to a loss of $172 million one year ago.

Microsoft sold 1.7 million Xbox 360 units in the quarter, an increase of 18 percent from year prior.

Microsoft in Sept. will sell a new limited edition Xbox 360 320GB Gears of War 3 Bundle at $399.99.

This holiday it will sell the Xbox 360 Limited Edition Star Wars Kinect Bundle at $449.99.

Current Xbox 360 stand-alone SKUs include the Xbox 360 250GB hardware at $299.99 and the Xbox 360 4GB hardware at $199.99.

Bundle SKUs include the Xbox 360 250GB Kinect Special Edition Bundle at $399.99 and the Xbox 360 4GB with Kinect bundle at $299.99.

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