According to a recent Reuters report, Microsoft's losses on the Xbox almost doubled in the final quarter of last year, contributing to an overall operating loss of some $348 million for Microsoft's home and entertainment division. Last year the division, which incorporates Microsoft's PC games and TV products, posted a loss of just $180 million. What this doesn't mean, however, is that the Xbox is performing badly at retail. Since Microsoft loses an estimated $100 on every Xbox console that's sold, the massive losses made in December suggest that the console sold extremely well during the Christmas holiday season, increasing the number of potential buyers for any games released subsequently. The quarterly report with the US Securities and Exchange Commission also showed that Microsoft's overall operating income for the quarter was $1.97 billion as opposed to $2.11 billion the previous year.
