onsolidated gross margins for the first quarter came in at 57%, up from 55% in the prior year quarter. Net income in the first quarter totaled us$ 113.7 million or us$ 0.36 per diluted share, compared to us$ 121 million and us$ 0.35 per diluted share in the prior year quarter.
"During the first quarter, IGT made progress towards achieving our long-term objectives, including demonstrating at the Global Gaming Expo this past November our vision for the right slot floor today and in the future. Operationally we continued to generate margin improvements and moderate revenue growth despite reduced marketplace demand," said Chairman and CEO TJ Matthews.
First quarter revenues and gross profit from gaming operations improved to us$ 332.3 million and us$ 199.4 million, respectively, compared to us$ 324.9 million and us$ 186.7 million for the same period in the prior year. Gaming operations gross margins for the first quarter were 60% compared with the prior year quarter at 57%. Revenue and gross profit growth were primarily driven by an increase of 5,700 units in our installed base from the prior year quarter.
Year-over-year lease operations placements increased 2,300 units, mainly in Mexico, New York and Rhode Island. Casino operations placements increased 3,400 units year-over-year as a result of expansion in Oklahoma and Florida. Compared to the fourth quarter of fiscal 2007, casino operations units increased 100 units and lease operations units were down 500 due to temporary removals in Mexico.
Worldwide product sales revenues produced first quarter revenues and gross profits of us$ 313.5 million and us$ 167.2 million, respectively, compared to us$ 317.4 million and us$ 165.3 million in the prior year quarter. Worldwide shipments totaled 20,200 units compared to 26,800 units in the first quarter of last year. Gross profits increased despite the 25% reduction in shipments due to favorable product and geographic mix. Non-machine revenues increased to us$ 99.3 million or 32% of total product sales from us$ 84.8 million or 27% of total product sales in the comparable prior year quarter, primarily as a result of growth in network systems sales.
North America shipments of 7,300 units were off 40% from the comparable prior year quarter total of 12,200, while product sales revenues decreased only 19% for the same period. Non-machine revenues were us$ 76.1 million in the first quarter or 46% of product sales, up from us$ 69.2 million or 33% of product sales in the prior year quarter. Units shipped were down due to a reduction in replacement demand.
International product sales revenues improved 33% from the comparable prior year quarter due to favorable product mix. During the first quarter, international machine shipments totaled 12,900 units versus 14,600 units last year, with lower shipments into Japan and the UK partially offset by increased shipments into all other international markets. Non-machine revenues totaled us$ 23.2 million or 16% of international product sales compared to us$ 15.6 million or 14% in the prior year quarter.
First quarter operating expenses increased to us$ 170.8 million from us$ 166.8 million in the prior year quarter, primarily due to additional staffing initiatives and a greater investment in research and development. Other expense, net, was us$ 7.6 million in the first quarter compared to other income, net, of us$ 4.5 million in the prior year quarter.