LOS ANGELES, Jan 27 (Reuters) - Microsoft Corp. (MSFT.O: Quote, Profile, Research) on Thursday raised its forecast for Xbox video game console sales and Xbox Live online gaming subscriptions after a strong holiday season.
Microsoft said it now expects to end the current fiscal year in June with a worldwide installed base of 21 million to 22 million Xboxes, up from a prior estimate of just under 20 million units.
"Demand was so great that we nearly made our full fiscal year console target six months ahead of schedule," Chief Financial Officer John Connors said on a conference call with analysts after Microsoft posted quarterly results.
The Xbox Live service should have 1.6 million to 1.8 million subscribers by the end of the fiscal year in June, Connors said. The company had forecast 1.5 million users.
In the most recent quarter, Microsoft swung to a profit in its home and entertainment unit, driven in large part by sales of the blockbuster game "Halo 2" for the Xbox.
Connors also said Microsoft was hard at work on the next generation of the Xbox, widely expected within the industry to be on track for a late-2005 release.