In a quarterly report to the SEC, Microsoft's Home and Entertainment division, which includes the Xbox, posted a quarterly loss of $348 million on revenue of $1.28 billion compared to a loss of $180 million on $833 million a year ago.
Microsoft loses money on each console it sells, with some analysts estimating the per unit loss at $100, leading to higher losses as sales increase.
Overall, the company posted income of $1.97 billion on revenue of $2.44 billion, down from $2.11 billion on revenue of $2.68 billion a year ago.
