Demand for XBL drives Microsofts RevenueOperating income for the quarter rose 17 percent to $3.89 billion from the $3.33 billion in the prior-year period, benefiting partly from a large reduction in legal costs to $397 million over the quarter compared to $768 million in the prior-year period. Net income came in at $2.98 billion for the quarter, with diluted earnings of 29 cents per share, which included 3 cents of legal charges. That compares with net income of $2.56 million for the same quarter of the previous year and diluted earnings of 23 cents a share, of which 5 cents was for legal charges. Home and Entertainment revenue was up more than 80 percent on strong demand for the Xbox 360 system; Microsoft Business Solutions notched up 21 percent in revenue growth on continued interest in the Microsoft Dynamics line of business management solutions, said Chris Liddell, Microsofts chief financial officer, in a statement released after the financial markets closed in New York on April 27. "This quarter marked the 15th consecutive quarter of double-digit revenue growth for the server and tools business, with Microsoft SQL Server revenue up more than 30 percent over the quarter," said Kevin Johnson, the co-president of Microsofts platforms and services division, in a statement.