Microsoft has announced the China-based manufacturing arm of Acer – Wistron – will join Flextronics as a manufacturer of the Xbox gaming system.
While adding that the company was pleased with Flextronics’ performance since the launch of the console, Microsoft said that Wistron would handle ‘incremental volume at this time’.
The decision is underscored by the signing of an MOU between Microsoft and China’s state development planning commission in June.
That agreement will see the establishment of a US$750 million investment and cooperation agreement with the Chinese government and IT industry – the Wistron partnership the first under this scheme, according to Microsoft Xbox business development director Par Singh.
“With the expansion of Xbox into six new countries and regions, we anticipate a hot holiday season for Xbox,” Singh said.
“With Wistron and Flextronics on board, we are well prepared to meet the anticipated demand.”
Singh said the Wistron facility would begin manufacturing consoles in its Zhongshan, China, facility before the end of 2002.
The facility will provide manufacturing services from parts to final packaged product including parts procurement, assembly and integration, testing and final box build.