Confirmed: 360 Maker Stopping Production

A Microsoft rep has confirmed to Next-Gen that Wistron, one of three Xbox 360 manufacturers, will be dropping production of the console this year--"a common practice," according to Microsoft; move will not affect forecasts.

In a prepared statement, Microsoft said that its contract with Taiwan-based Wistron would "voluntarily expire" on July 1 this year. Production volumes will be transferred to Microsoft's remaining two manufacturers, Celestica and Flextronics.

"These types of adjustments are considered a common business practice within the consumer electronics industry and should not reflect on the relationship between Microsoft and Wistron," the statement continued. "Also, this does not affect our guidance which still implies we expect to sell about 12 million Xbox 360 consoles by end of June 2007."

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notwithstanding4758d ago

Yeah it's common to stop production of something if it is not selling as much as it once has.

Black Republican4758d ago

so i guess that means that whatever production company is doing ps3 for the states will stop soon too since the ps3 is doing worse then the xbox360 in the states

consolewar4758d ago

those are some nice hits for massive damage. Both consoles suck anyway.

Yo Wassap4758d ago

I think what 1. meant is that the 360 isn't selling as quickly as when it was launched. It still doesn't mean it's selling a load of units, just not as many; which is again quite normal in any business. It makes sense to remove a producer when they are making surplus; after all surplus is never a good thing in sales.

artman4758d ago

maybe that is the factory who produce refurbish 360...

Rasputin20114758d ago

There could be a number of reason why MS and Wistron parted ways...and I highly doubt anybody on this site can state the 100% true all people can do is use this as flame bait and/or speculate.