Reports circulating around the news services, indicate that Microsoft's losses on Xbox were almost double in the final quarter of 2002. These losses contributed to an overall operating loss of $348 million for Microsoft's home and entertainment division. (Microsoft's home and entertainment division is made up of PC games division and TV products division.) Microsoft is estimated to take about a $100 loss on every Xbox sold, this is not uncommon in the video game hardware arena. Most video game hardware makers are willing to suffer a loss on the hardware in hopes of making up that loss on the software. Xbox did sell well this Christmas season increasing the amount of potential software sales. Xbox did contribute to some light at the end of the tunnel with encouraging sales of the Xbox Live starter kit which was released before Christmas. The release of Xbox Live did spur sales of Xbox Live compatible software titles.