Xbox Addict

MS Talks About World Demand

-- To best meet initial demand for the Microsoft(r) Xbox(tm) video game system around the world, Microsoft Corp. today announced key elements of its Xbox manufacturing and logistics plans. Under the plans, the company will bolster distribution capabilities by working with Flextronics International Ltd. to establish Xbox manufacturing facilities in several regions of the world.

Microsoft also confirmed its plans to launch Xbox in North America and Japan in fall 2001 and in Europe in the first quarter of 2002, carefully staging the rollout of Xbox so that demand can be met in each region.

"Our goal is to carry out a strong Xbox launch that is well-orchestrated and well-supported," said Robbie Bach, senior vice president of the Games Division and chief Xbox officer (CXO) at Microsoft. "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."

Flextronics will initially establish and manage regional Xbox manufacturing operations in Mexico and Hungary. Noted for its flexibility, quality and speed in manufacturing consumer electronics products, including Microsoft’s other hardware products, Flextronics has demonstrated its ability to deliver premium full-service global manufacturing projects. In addition, Microsoft’s long-term plan is to open a manufacturing facility in Asia to support markets in that region, including Japan.

"Establishing regional manufacturing facilities will make the distribution support and service to our global retailers more efficient," Bach said. "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."

With nearly a year before the Xbox launch, Microsoft has made tremendous progress in garnering support from the game development and retail community. The company has signed more than 200 of the world’s top game developers and publishers to create Xbox games. For example, it announced last week that Electronic Arts will provide up to 10 titles during the Xbox launch period.