Overall, the company's profits edged up to $4.3 billion for the quarter, but EDD, which also includes Zune, Games for Windows, and Mac application software, decreased 6 percent to $1.81 billion. Its profits edged up 7 percent to $178 million.

Microsoft's SEC filing noted that the division's revenue decreased primarily due to decreased Xbox platform and PC game revenue, partially offset by increases across other EDD product revenue.

It revealed that Xbox 360 platform and PC game revenue decreased $331 million or 22 percent, primarily as a result of the $330 million of incremental revenue from the launch of Halo 3 in the three months leading up to September 30th, 2007, as well as decreased revenue on Xbox 360 consoles as a result of price reductions during the prior 12 months.

Read the entire article HERE.