Xbox 360 Shortages Explained as New Makers Come Onstream?
Microsoft can up capacity
Recent Xbox 360 supply shortages were probably more to do with the fact that one of the Chinese OEM (Original Equipment Manufacturers) responsible for making the hardware had not yet been replaced.
Back in March 2007 we reported that AOpen owner, Taiwan-based Wistron, would gradually discontinue the production of Xbox 360s for Microsoft in 2008, due to declining profits on production of the consoles.
This left Microsoft with two Chinese 360 makers in the form of Celistica and Flextronics.
Now a report in Digitimes indicates that the gap has been filled with Pegatron Technology and Unihan Technology, "two OEM makers spun off from Asustek Computer... will undertake the production at their factories in Suzhou, China, with an initial monthly shipment volume of about 500,000 units".
In a twist that will leave fanboys howling - we hope - Digitimes also points out that, "In addition to the Xbox 360, Pegatron and Unihan are undertaking OEM production of PlayStation 3 consoles for Sony, the sources noted".
So, maybe the shortages are not all about stockpiling inventory for the release of GTA IV.
Source: Digitimes
Back in March 2007 we reported that AOpen owner, Taiwan-based Wistron, would gradually discontinue the production of Xbox 360s for Microsoft in 2008, due to declining profits on production of the consoles.
This left Microsoft with two Chinese 360 makers in the form of Celistica and Flextronics.
Now a report in Digitimes indicates that the gap has been filled with Pegatron Technology and Unihan Technology, "two OEM makers spun off from Asustek Computer... will undertake the production at their factories in Suzhou, China, with an initial monthly shipment volume of about 500,000 units".
In a twist that will leave fanboys howling - we hope - Digitimes also points out that, "In addition to the Xbox 360, Pegatron and Unihan are undertaking OEM production of PlayStation 3 consoles for Sony, the sources noted".
So, maybe the shortages are not all about stockpiling inventory for the release of GTA IV.
Source: Digitimes
Companies:
Microsoft
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Comments
SuperSaiyan4 18 Mar 2008 16:04
1/3
There are no shortages I mean if there are how can Microsoft afford to reduce the price of the consoles?? Its just they are not selling that many thats all it is.
alexh2o 18 Mar 2008 19:58
2/3
SuperSaiyan4 wrote:
There are no shortages I mean if there are how can Microsoft afford to reduce the price of the consoles?? Its just they are not selling that many thats all it is.
The component costs have still come down so Microsoft can reduce the price through lower manufacturing costs, regardless of fewer sales (within reason). Although the shortages are probably in part caused by this I would agree that there is equal likelihood they are simply selling less now. That was until the price cut...
Rutabaga 18 Mar 2008 21:28
3/3
SuperSaiyan4 wrote:
There are no shortages I mean if there are how can Microsoft afford to reduce the price of the consoles?? Its just they are not selling that many thats all it is.
Your quite right (I thought I'd never say that :-/). I don't know any company in the world that would reduce the price of something that is in massive demand.