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  Xbox marks the sore spot
Time: 11:05 EST/16:05 GMT | News Source: Money Central | Posted By: Byron Hinson

Microsoft's lower-than-expected earnings are due in part to the cost of making the gaming console, and more research expenses could hurt future results. Microsoft on Thursday reported a quarterly profit increase of 16 percent and a sales gain of 13 percent on strong sales of its Xbox 360 gaming console and business software, but its earnings and sales fell short of Wall Street analysts' expectations and it revealed that its expected operating income for the coming fiscal year will be about $2 billion shy of what analysts had estimated. Microsoft's stock tumbled more than 8 percent in pre-market trading
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