Thinking inside the Xbox

LAS VEGAS - Things are looking pretty good for Microsoft's top gaming guru.

But you won't find him in front of a TV playing Xbox. Robbie Bach's game is making the Microsoft's entertainment division win on the balance sheet.

Bach, president of Microsoft Entertainment and Devices, raised industry eyebrows when his division posted quarterly profits of $165 million on $1.93 billion revenue, compared to a loss of $142 million the previous year.

But compared to Microsoft's traditional software cash cow, which generated $7 billion in profit, the Entertainment and Devices folks have a long way to go. Bach takes the long-term view.

"The bigger way I think about it is this whole fiscal year being important for us," said Bach. "We want to sustain that."

His division includes all Microsoft hardware like mice and keyboards, Xbox, Internet TV, Windows Mobile Business, Media Centre and the Zune portable player, soon available in Canada.

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