With Nintendo searching for more manufacturing partners and the announcement of the Xbox 360 Elite, the console component supply chain is due to shift.
In order to meet demand for Wii, which presently far outstrips supply, Nintendo intends to find another manufacturer to bolster production of the console, currently being handled solely by Foxconn Precision Components (FPC). New manufacturing partners under consideration include Asustek Computer, Compal Electronics, Inventec and Wistron, which are all eager to land a contract with the Japanese firm.
Nintendo's latest financial statement reports that 3.19 million units were shipped by the end of 2006, and NDP Group figures show that in the first two months of 2007, Nintendo has delivered 771,000 Wii's to the North American market, approximately 250,000 units more than Xbox 360, and more than double the amount of PS3s.
In light of the upcoming Xbox 360 Elite launch, Microsoft intends to reduce the costs of the current 360 models, and is expecting its manufacturing partners Celestica, Flextronics and Wistron to reduce their quotes for production accordingly. If negotiations on this matter weren't to go smoothly, there could be further disruption to the console supply chain, reports DigiTimes.