SAN FRANCISCO — US technology giant Microsoft said Thursday its annual profit soared on record revenue thanks in part to hot demand for its Xbox 360 videogame console gear and online network.

Microsoft reported its net income surged 23 percent to $23.15 billion on record high revenue of $69.94 billion in the fiscal year that ended June 30.

The annual results came with word that Microsoft posted profit of $5.87 billion on record revenue of $17.37 billion in the fiscal fourth quarter that ended June 30.

"Throughout fiscal 2011, we delivered to market a strong lineup of products and services which translated into double-digit revenue growth, and operating margin expansion," said Microsoft chief financial officer Peter Klein.

Microsoft Business Division revenue grew 16 percent for the year, with the Redmond, Washington-based company selling more than 100 million licenses for the latest version of its Office software.

Microsoft said its online services unit saw revenue climb 15 percent during the year, primarily driven by gains in income from Internet search.

Bing's share of the US search market had grown to 14.4 percent by the end of June, according to the company.

Revenue from the Entertainment & Devices Division at Microsoft leaped 45 percent for the year due to "ongoing momentum" of the Xbox 360, Kinect gesture-sensing controllers for the consoles and the Xbox Live network that connects consoles to online games, films and other digital offerings.

"We continue to see strong business demand across all our products, from small businesses all the way up to the largest global enterprises," said Microsoft chief operating officer Kevin Turner.