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Xbox Division Posts $1.26 Billion Loss

Microsoft’s Home and Entertainment division, home to the Xbox, posted a hefty fiscal year loss of $1.26 billion, thanks largely to losses involved with the Xbox 360. For Microsoft’s fourth quarter, losses in the Home and Entertainment division were $414 million. Microsoft says they have shipped 5 million Xbox 360 units worldwide as of the end of June, roughly seven and a half months after launch. According to a Gamasutra article in late April, Sony’s PS3 is also expected to post losses, though not as steep as Xbox 360’s. They expect a game division loss of $870.6 million for fiscal year 2006.