Microsoft Xbox 360 Wireless Networking Adapter

Microsoft's Big Plans to Keep Booming Xbox 360 on a Roll

Technological toys aren’t built to last, either as playthings or as trends. Just look at how Apple (NASDAQ: AAPL ) does its business. A new iPhone, new iPod and now a new iPad model every year. Keep it cutting-edge, and you keep the public interested, while also creating a lasting market by lowering prices on older models. That’s the way to do it.

Unless, of course, you’re Microsoft (NASDAQ: MSFT ).

reprinted details from Microsoft’s second-quarter earnings report on Friday and posted numbers that impress, to say the least. The company shipped almost 14 million Xbox 360s during the second quarter – growth of 45% over the same period in 2010. The game player generated almost $3 billion in revenue from the company, good for year-on-year growth of 48%. Thanks to the success of the Kinect – the hands-free motion control device for the 360 – Microsoft continues to build its presence as an entertainment industry dynamo.

The good times should continue to roll into the back half of 2011, as well. Here’s what Microsoft has up its sleeve to keep the Xbox business bumping.

Big Promotions

What’s most impressive about the Xbox’s ongoing success is that the company never has had to significantly drop the price. While the $299 model of the Xbox 360 comes with more bells and whistles – a larger hard drive, an internal wireless adapter – than it did in 2005, it’s still remarkable that the best-selling model never has dipped below $200, the sweet spot for family shoppers. That doesn’t mean the company is any stranger to aggressive promotions. The company debuted a new Kinect/Xbox 360 package that comes with a new Star Wars game at Comic Con in San Diego. It also is running a promotion through Microsoft.com, offering a free Xbox 360 to any college student buying a Windows 7 PC above $699.

Live Television

The Xbox 360 has been almost as popular as a multimedia player as it has been as a game-playing device. It was one of the first machines to host Netflix ‘s (NASDAQ: NFLX ) streaming service and has been partly responsible for its proliferation since 2008. While the company hasn’t announced details yet, it will be partnering with Comcast (NASDAQ: CMCSA ), Time Warner (NYSE: TWX ) and other cable/satellite providers to broadcast live television on the Xbox 360 through its subscription-based online network, Xbox Live.