Microsoft sold 70 million Xbox 360 consoles worldwide in the first quarter of fiscal year 2013, the company reported on Friday.
That's a rise of 20 million units from last year, IGN reported.
"Xbox continues to be the top-selling console in the U.S., where it now has 49% market share," Microsoft said.
In a hint towards the development of next console, Microsoft said that it would be increasing the costs for research and development.
While the revenue of Windows and Windows Live was down 33 percent from last year.
"We're incredibly excited to be approaching general availability of Windows 8 and Windows RT," Microsoft COO Kevin Turner said about the upcoming release of Windows 8 OS. "We've already certified more than 1,000 systems for Windows 8 from our hardware partners, ranging from the smallest tablets and convertibles to touch-enabled ultrabooks and all-in-ones to the most powerful desktop computers.
"Windows Phone 8 will launch this fall with an expanded array of products, prices, carriers, and markets."
Microsoft confirmed on Monday that there would be $50 price cut on Xbox 360 for the holiday season.
The company also revealed two new bundles priced at $250, which are aimed at hardcore gamers and families.
Microsoft's next console is dubbed Xbox 720. Xbox 720 is eagerly anticipated by players and fans. Reports have suggested that the company is headed for the launch of Xbox 720, and analysts have predicted that it will be out in 2013.
