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."