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  Rivals Microsoft, Sony outsource production of video-game consoles
Time: 15:51 EST/20:51 GMT | News Source: MSNBC | Posted By: Alex Harris

Video-game rivals Sony Corp. and Microsoft Corp. are quietly farming out production of their machines to low-cost contractors at a time when lagging sales of Microsoft’s Xbox in Europe and Japan are leading many in the industry to predict a price-cutting battle later this year.

Until recently, Tokyo-based Sony produced all its PlayStation 2 machines in-house in Japan. Now Sony is tapping Taiwanese manufacturing specialists to make the PlayStation 2 in China, said Yoshiko Furusawa, a spokeswoman for Sony’s PlayStation business. Ms. Furusawa was tight-lipped about details of the shift, which hasn’t been announced publicly. She wouldn’t say how many machines will be made in China or where the consoles could end up being sold.

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