…But still loses $290 Million. And wait a minute… What’s a Zune?

Earlier today, Microsoft released its fiscal 2007 second quarter ended financials. The delay of the consumer versions of Windows Vista and Office 2007 affected considerably Microsoft’s fiscal second-quarter profits. But the company also reported record revevues driven primarily by sales of Xbox 360 hardware and software.

The entertainment and devices division, which includes the Xbox 360 and the Zune, saw a revenue of 2.96 billion, a 76 percent jump. This division now represented 25% of the company’s total sales, a huge jump from the 15% it represented a year before.

Unfortunately, the division keeps losing money. Operating loss increased up to $289 million from $286 million a year ago.

Source: TeamXbox