Microsoft has announced that it will be shifting the production of Xbox hardware away from its primary factory in Hungary. Flextronics, the firm charged with hardware production for Xbox, will now concentrate on two factories, one in China and one in Mexico.
"We are confident that through the local supply base and our substantial buying power we can help Microsoft reduce product costs and assist in meeting the growing worldwide demand for Xbox", said Flextronics CEO Michael Marks.
The move will power the Xbox price cut and should enable Microsoft to more easily switch production to the next generation of hardware it plans.
There is also talk of a third production facility, also to be based in China.
"We are confident that through the local supply base and our substantial buying power we can help Microsoft reduce product costs and assist in meeting the growing worldwide demand for Xbox", said Flextronics CEO Michael Marks.
The move will power the Xbox price cut and should enable Microsoft to more easily switch production to the next generation of hardware it plans.
There is also talk of a third production facility, also to be based in China.
Companies:
Microsoft
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