Money

Microsoft has posted a 22% increase in revenue for its Home and Entertainment division which includes the Xbox console. Despite this, the division is still making a loss of $391 Million, down from $1.2 Billion last year. It seems that Microsoft won't manage to break even for it's first foray into the console wars, let alone make an overall profit. With the Xbox 360 expected to be a big loss maker in its first year of production, it seems Microsoft is going to have to keep dipping into that $50 Billion cash reserve they have stashed away. Ah well, they might as well spend it on something!

[Thanks, JamesO]

This article was originally published on Joystiq.

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