The Entertainment & Devices Division reported an operating profit of $426 million for the fiscal year, compared to a loss of $1.9 billion a year earlier. The year ago results included a $1.1 billion write-off for the cost of replacing defective Xbox 360 consoles.

The company said it sold 1.3 million consoles during the fourth fiscal quarter ended June 30, bringing its total sold to date to 20 million units. The Xbox Live online game service has more than 12 million subscribers now — both free and paid — and Microsoft and its partners are selling 7.7 games for each console sold. Research and development costs were up $141 million, reflecting higher headcount costs.