360 to take a serious development hit next year?

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Jagazaar

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#1 Jagazaar
Member since 2007 • 1023 Posts

http://www.gamesindustry.biz/content_page.php?aid=23789

Wistron, the Taiwanese device manufacturer currently producing Xbox 360 units for Microsoft, is likely to halt production of the console during 2008, according to a report in the Economic Daily News.

The company is likely to discontinue manufacturing of the console due to the decline in profits and because Microsoft has partnered with rival manufacturer Celistica, reports DigiTimes.

Production of the Xbox 360 currently accounts for around 10 per cent of Wistron's business and it is thought halting production will not have any serious impact on the company.

 

Now, I'm not one that usually gets involved in these arguments about which system 'pwns' the others and whatnot, but I still found this to be very, very interesting information. All issues about which system has better games/graphics/features/etc aside, I think it's pretty obvious that a games platform cannot succeed if it can't actually be MADE.

Of course, Microsoft no doubt still has the design for the 360 and can take it elsewhere, but it would still put them at a rather large disadvantage if this prediction is true, I'd imagine.

Your thoughts, people?

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mirlegend

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#2 mirlegend
Member since 2002 • 6737 Posts
"The company is likely to discontinue manufacturing of the console due to the decline in profits and because Microsoft has partnered with rival manufacturer Celistica, reports DigiTimes." seems they have someone else in mind anyway so it wont matter much.
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Medjai

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#3 Medjai
Member since 2003 • 3839 Posts

From what I can see is they are going to have some1 else take over the manufacturing...MS owns the patent to the manufacturing processes so they can have who ever they want make the chips, I don't see the problem??

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luvbeers

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#4 luvbeers
Member since 2004 • 438 Posts
Wistron Corp is probably the knucklehead who has been making those faulty 360's. MS has probably found production costs cheaper and more reliable at Celistica and due to contract reasons, can only push Wistron's profiting down in order to get out of it. Otherwise they plan on halting the current 360 model altogther in favor of the 65nm Elite.
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Jagazaar

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#5 Jagazaar
Member since 2007 • 1023 Posts

Whoops, seems you guys are right, way for me to not read the article properly....boy is my face red right now :oops:

Might as well lock this thing then, there's not really much point to it. Though I have to agree with luvbeers, if Wistron IS the group making the faulty 360's, then this is actually good news for M$ and the 360 owners who have to send their console in for regular repairs, which I can imagine would be a pain. =/

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asmallchild

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#6 asmallchild
Member since 2007 • 2015 Posts

Whoops, seems you guys are right, way for me to not read the article properly....boy is my face red right now :oops:

Might as well lock this thing then, there's not really much point to it. Though I have to agree with luvbeers, if Wistron IS the group making the faulty 360's, then this is actually good news for M$ and the 360 owners who have to send their console in for regular repairs, which I can imagine would be a pain. =/

Jagazaar
Awesome. That would be great if they've located the source of the problem. Eliminate those units and goodbye red ring of doom problems!
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billbradsky

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#7 billbradsky
Member since 2007 • 370 Posts
How is that a development hit?  It's reducing production by eliminating a manufacturing plant.