XBOX PRODUCTION MOVING TO CHINA
May 15, 2002

Microsoft and Flextronics plan to establish an Xbox assembly plant in Doumen, China later this year. The Doumen plant will replace the one in Hungary and is expected to account for the majority of Xbox production. All Xbox manufacturing will be done at the Guadalajara, Mexico plant for about a month after operations are relocated from Hungary. An additional factory will also be setup in Asia later this year.

"The Doumen facility will enable Flextronics to manufacture Xbox consoles under ideal production circumstances," said Todd Holmdahl, general manager of Xbox Hardware at Microsoft. "It is a large facility with a strong infrastructure and flexible production capacity that will result in significant cost efficiencies."

Michael Marks, chairman and CEO of Flextronics, added, "Our manufacturing facilities in the Far East are some of the best operations anywhere in the world, and we are confident that our industrial park in China will meet the production demands of Xbox moving forward. Further, we are confident that through the local supply base and our substantial buying power we can help Microsoft reduce product costs and assist in meeting the growing worldwide demand for Xbox."

The move comes on the heels of today's price cut announcements in both North America and Asia, as well as the European and Australian price drops of a few weeks ago.

Discuss: Anything | Xbox | This article