Microsoft shipped 4.4 million Xbox 360 consoles in the second quarter, according to their recently released financial results. Xbox revenue increased 76% year over year, but the Entertainment and Devices division still posted a quarterly loss of $289 million. According to Gamasutra, Microsoft partially blamed the losses on the launch of the Zune and changes to the Xbox 360 warrantee program from 90 days to one full year. Speaking with investors via conference call, Microsoft also adjusted their full year estimates for Xbox 360 shipments down to 12 million, from its previous estimates of 13 – 15 million. Overall, Microsoft should be pleased with the sales of the Xbox 360 this holiday season, but the upcoming year may be challenging as the company competes head on with Nintendo and Sony for marketshare.