Microsoft avoids red ring of death with Xbox One sales

Microsoft's fourth-quarter sales report reads a bit like a Shakespearean play - it's basically a roller coaster of emotions.

The major highlight for gamers, however, is that the Xbox One has finally turned the tide on its blundered launch, posting a 27% increase in revenue year-over-year. This number, a combination of console sales, game sales and Xbox Live transactions, contributed to the $28 billion (about £18 billion, AU$37 billion) in profit the Redmond firm posted in the fourth financial quarter of 2015.

If only the rest of the divisions up in Redmond had similar results.

Windows OEM revenue (think computer components) dropped 22% before the company lost $7.6 billion (about £4.9 billion, AU$10 billion) in the Nokia division's restructuring process, which resulted in a several billion dollar net loss for the company.

To new beginnings

The Xbox One's momentum in the fourth quarter should be a major boon to the company once Windows 10 launches later next week. More consoles means better interconnectivity between PCs and Microsoft's systems, and a better ecosystem is a win-win for everyone.

Microsoft still faces a major hurdle with sales of the console with the most recent sales results showing PS4 outselling Xbox One 23 million units to 12 million. But with Halo 5: Guardians and Rise of the Tomb Raider just a few months away, that ratio could shift.

• Here's what Microsoft has in store for the next Xbox!