We present preliminary results from a detailed analysis of the X-ray point sources in the XMM-Newton survey of M31. These sources are expected to be mostly X-ray binaries. We have so far studied 225 of the 535 sources found by automated source detection. Only sources which were present in all three EPIC images were considered. X-ray binaries are identified by their energy spectrum and power density spectrum. Unlike in other surveys we have obtained source luminosities from freely fit emission models. We present uncorrected luminosity functions of the sources analysed so far.
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