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Xbox Manufacturing Momentum Slowing, Analysts Say

Time: 14:11 EST/19:11 GMT | News Source: Reuters | Posted By: Robert Stein

Microsoft Corp. may be falling behind on its fiscal-year shipment targets for the Xbox which could hurt the video game console's manufacturer, Flextronics International Ltd. , two Wall Street analysts said on Tuesday. One of the analysts, Chris Whitmore of Deutsche Banc Alex. Brown, said part of the problem came from weaker than expected sales of the $299 console at the consumer level. The Xbox debuted in the U.S. last November, in Japan in February and in Europe in March. Flextronics manufactures it for all three regions under a contract analysts have said could be worth at least $1 billion a year.

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