About all that money extorted from Android for nothing, let's just hope that scam end soon
http://www.osnews.com/story/27485/Google_sues_Apple_Microsoft-backed_patent_troll_Rockstar
Besides stopping a filthy exploiting (just one of the countless ones, alas) of awful US patent laws, it would finally clear this matter about those huge revenues covering other losses or not.
About losses of MS divisions, though, MS routinely hids part of them in another way, a separated balance sheet item called "Corporate-level activities" where it accounts for many losses or costs that can be attributed to more than one division (for example, if they plan to use Kinect on PCs and not just for entertainment, they could put its R&D costs, or part of them, in this balance item, although they almost surely account for production costs in the entertainment division). "Certain other corporate-level activity is not allocated to our segments, including costs of: broad-based sales and marketing; product support services; human resources; legal; finance; information technology; corporate development and procurement activities; research and development; legal settlements and contingencies; and employee severance." http://www.microsoft.com/investor/reports/ar11/financial_review/segment_geo.html