Shakeups expected in Wii and Xbox 360 supply chains

The game console component supply chain may see some shaking up in the near future, with more partners expected to produce the Nintendo Wii, and Microsoft expected to adjust its supply chain amid the launch of its Xbox Elite, industry sources indicated.

Sole reliance on Foxconn Precision Components (FPC) for assembly of the Wii appears to be insufficient to meet persistent strong sales of the game console, according to the sources. In order to guarantee smooth shipments, Nintendo is now looking for one more manufacturing partner, with Asustek Computer, Compal Electronics, Inventec and Wistron aggressively striving to land the partnership, the sources noted. ODM and OEM makers including Mitac International Corporation (MIC) and Quanta Computer, however, do not appear to be candidates.

Among the mentioned players, Asustek and Wistron assemble the Sony PlayStation 3 (PS3) and Xbox 360, respectively. Asustek has accumulated revenues of NT$51.4 billion through February for its 3C goods.

According to Nintendo's latest financial statement, the game console vendor had accumulated shipments of 3.19 million units through the end of 2006. For the first two months of this year, Nintendo has already shipped 771,000 Wii consoles in North America, compared with shipments of 522,000 for the Xbox 360 and 371,000 for the PS3, according to statistics from NPD Group.

Other changes in the game console supply chain may be seen for the production of the Xbox 360. With the launch of Microsoft's Elite version, the company is preparing to reduce prices on other Xbox 360 models and has expressed its wish to reduce quotes from its three major assembling partners, namely, Celestica, Flextronics and Wistron. If any of these players seems disinclined to accept the lower quotes, there could be some shakeups in that supply chain as well.

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NewfZ4278d ago

I'd rather they just ditch the core altogether and lower the premium down to core price.

JasonPC360PS3Wii4278d ago (Edited 4278d ago )

As long as there is a low price because it wouldnt be fair to the lower class.

Here Kyur4ThePain I'm just going to copy and paste this from an earler post that I pwned you on. I hope you never walk into a bar with war Veterans because you would get you cowardly face smashed.

You do realize we export products, stuff like food, technology, medicine, cars and everything in between. So the money from these things help the economy. They help to support your spoiled gas using electronic buying American A$$. Or do you like to have other countries spend your dollars in there country taking away from the benefits that help your American a$$ when you retire. If more Americans like you spent less time helping other countries we wouldn’t have people starving here A$$hole.

Before anyone responds, Yes I know the Microsoft uses parts made in other countries but we benefit in the end (with taxes) and that’s helps keep people from starving and helps give them or there children medical care.

Also Kyur4ThePain why don’t you get in your car and drive to the other side of town, You know the not so rich side of town where someone ”like you” would probably lock your doors to avoid the people. Then maybe you can see the not so well off part of America the side you seem to forget in your comments.

Kyur4ThePain Free Speech protects you and me, even if you do spit on your flag. Don’t like my campaigning don’t read it, no one forces you to click my pics do they..

Kyur4ThePain4278d ago

Your Americans, buy American attitude is stupid, because just about no complete product is made entirely in the US, so what exactly are you telling us to buy?
Most of the money you pay for a 360 (and yes, that is what you're referring to - trying to sway people to buy a 360 with "patriotism") goes to other countries, so please stop fooling yourself.
Oh, and this post is actually on topic as it relates to the supply chain and money exchange in the production of consoles.

EasilyTheBest4278d ago

The CORE is there for the microsoft advantage.... It well never ever be dropped.

NewfZ4278d ago

Not really, Microsoft hardly makes an advantage off the core. But the cost of manufacturing the 360 has gone down since they first released the 360. If they lowered the price of premium down to core's pricing then dropped core altogether it wouldn't be too bad. The cores a bit of a joke in the next gen console war.

EasilyTheBest4278d ago

But why not then just drop the cores price... More ppl see the lower price and jump on board.. Ill say it again, the Core will NEVER be dropped.
Oh and Microsoft does make an advantage off the core money wise, that will get more so when theses consoles are going to be £99..

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