The company has sold 1.3 million Xbox units in the past three months and now has 43 million Xbox Live members.
Microsoft recent final reports reveal that the company has sold 77.2 million units of the Xbox 360 since its launch in 2005.
Interestingly, the 1.3 million sold in the past three months is actually a decrease of 9 per cent year-on-year.
Microsoft's Entertainment and Devices division, which accounts for Skype and Xbox, had revenue rise 56 per cent to US$2.53 billion.
"The bold bets we made on cloud services are paying off as people increasingly choose Microsoft services including Office 365, Windows Azure, Xbox Live, and Skype," Microsoft CEO Steve Ballmer said in a statement.
Microsoft's next generation Xbox console is tipped to be announced as early as 21 May. Rumours surrounding the device, code-named Durango, include the need for an internet connection, being a requirement and even the possibility of a cheaper mini version for casual gaming.
So far Microsoft has refused to comment its next generation product.