Flextronics goes to China

Updated - Xbox manufacturer leaves Hungary

Source - GameFaction / Reuters

Xbox manufacturer Flextronics is planning to move production of Microsoft's console from Hungary to China, it emerged today, although work will continue at the company's other Xbox factory in Guadalajara, Mexico. Despite highly disappointing sales in the Far East to date, there are apparently already plans to open a second Xbox plant in Asia in the future, presumably to take advantage of cheap labour in the region. "We are confident that through the local supply base and our substantial buying power we can help Microsoft reduce product costs and assist in meeting the growing worldwide demand for Xbox", Flextronics CEO Michael Marks told the press. Meanwhile Microsoft's Xbox hardware supremo Todd Holmdahl insisted that the move will "result in significant cost efficiencies". Whether or not this includes the cost of shipping the consoles half way around the world to Europe instead of moving them down the motorway from Hungary isn't clear. More details of the move emerged from Reuters yesterday, with Holmdahl telling the news agency that "from the start .. we knew we wanted to be in China at some point, but we were also on a very tight development schedule", debunking suggestions that the move was spurred on by a need to reduce production costs in light of recent price cuts. "As we move into the next phase of the program, cost and efficiency are very important and we are going to execute on our plans to move to China." The bad news for European retailers is that it will apparently take anything up to five weeks to transport Xboxes to Europe in future, presumably on a slow boat from China. Microsoft don't see this as a problem though, with Holmdahl telling Reuters that the company can "more accurately gauge demand" in Europe now, making it less important to have a local supply of the console. Well, that's one way of putting it. Related Feature - The Empire Strikes Back

Sometimes we include links to online retail stores. If you click on one and make a purchase we may receive a small commission. Read our policy.

Jump to comments (46)

About the author





The Elder Scrolls 6 may still be in pre-production

The claim was made via a now-deleted LinkedIn profile.

Switch's latest software update improves N64 emulation

There are still plenty of issues left, mind.

Steam Deck can now support games with Easy Anti-Cheat

"This means that the two largest anti-cheat services are now easily supported on Steam Deck."

You may also enjoy...

Another Wraith portal glitch has been discovered in Apex Legends

And players can even perfect this exploit in the firing range.

Grid Legends drops new Story Mode video teaser

And the story mode is called "Driven to Glory".

Raven Software ends QA strike action in light of unionisation

"Appreciate all the community support throughout the strike!"

Dark Souls PC online servers are down following reports of a security issue

The servers have been "temporarily deactivated to allow the team to investigate".

Supporters only

Comments (46)

Comments for this article are now closed. Thanks for taking part!

Hide low-scoring comments

Buy things with globes on them

And other lovely Eurogamer merch in our official store!

Eurogamer Merch
Explore our store