Microsoft's manufacturing partner Flextronics, currently responsible for producing the Xbox, released their fiscal fourth quarter results today. Revenue for the period was .30 billion, up slightly from .11 billion a year earlier. Profit for the quarter was .7 million, compared with a loss of 3.2 million in the same period last year. Flextronics' deal with Microsoft is said to be worth an estimated billion. Due to sluggish Xbox sales in Europe and Japan however, Flextronics has reportedly slowed production of the console. Moreover, Microsoft's rivals in the console market including Sony and Nintendo have begun moving their manufacturing facilities to China to exploit lower production costs. Similarly, Microsoft is said to be examining plans to build an Asian production facility for their console. Currently, the Xbox is manufactured through Flextronics plants in Mexico and Hungary.
|