Microsoft Outlines its Xbox Manufacturing Plans

Microsoft has outlined the key elements of its plans for the manufacturing and worldwide rollout of its Xbox console. The company will establish manufacturing facilities in several regions of the world as part of its partnership with Flextronics International. Initially, Flextronics will establish and manage manufacturing facilities in Mexico and Hungary. More long-term plans include a manufacturing facility in Asia to support markets in that region.

According to Microsoft, by diversifying the location of its manufacturing plants the company hopes to better service each of the primary regions: North America, Europe, and Japan. "Establishing regional manufacturing facilities will make the distribution support and service to our global retailers more efficient," commented Robbie Bach, senior vice president of the game's division and chief Xbox officer at Microsoft. "Microsoft is the only video game supplier that has set up a manufacturing and distribution center in Europe. And by deliberately staging our launches, we can better ensure that we meet customer demand in each area of the world."

Microsoft has kept a close eye on the PlayStation 2 launch in the US and Sony's current manufacturing and logistic problems with the console. Microsoft is taking every necessary step to ensure that it does not face a similar fate. "Our goal is to carry out a strong Xbox launch that is well orchestrated and well supported," Bach continued. "Meeting Xbox customer needs is job No. 1. After analyzing the supply and logistics challenges faced by the gaming industry this holiday season, we decided to clarify our new manufacturing plans so that we successfully meet product demand."

The Xbox will be launched simultaneously in North American and Japan in fall 2001. The European launch will follow in early 2002.