Microsoft Corp. nearly doubled its losses from the Xbox video game console in the December quarter, according to a regulatory filing on Friday, as the unit that makes its Office software closed in on Windows as being the company"s most profitable.
In a quarterly report with the U.S. Securities and Exchange Commission, Microsoft said it posted operating income of $1.97 billion in the December-ended quarter in its Windows-centered business unit on revenue of $2.44 billion. That was down from income of $2.11 billion and revenue of $2.68 billion a year earlier.
Microsoft"s Home and Entertainment segment, which includes the Xbox, games for personal computers and the company"s TV products, posted an operating loss of $348 million in the quarter on revenue of $1.28 billion.
The company loses money on each Xbox it sells, with some analysts pegging the shortfall at more than $100 per $199 console, meaning that strong sales for the platform actually increase its losses.