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Xbox-Related Stocks Drop After Cirrus Warning

Time: 17:20 EST/22:20 GMT | News Source: Reuters | Posted By: Julien Jay

Shares in companies that make hardware for Microsoft Corp.'s Xbox were mostly lower on Wednesday after chipmaker Cirrus Logic Inc. warned of a revenue shortfall from slack production of the video game console. Cirrus shares fell 43 cents, or 6.6 percent, to $6.11 on Nasdaq, after the company warned late Tuesday that revenue this quarter would be as much as 16 percent below guidance because of lower-than-expected sales to Thomson Multimedia. Cirrus sells its controller chips to France's Thomson, which builds them into the DVD drive for the Xbox. For its part, Thomson denied production was down, saying its Xbox-related orders have exceeded the contractually mandated production. Thomson called Cirrus' assertions about the shortfall "incorrect."

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