Microsoft appears to be increasing production of Xbox consoles. Recent reports from Reuters indicate that Foxconn and Luxshare, key hardware manufacturers, are expanding their facilities in Vietnam to handle more gaming hardware production. This information is based on documents filed with Vietnamese authorities.
So, I heard Foxconn, through its Fushan Technology branch, is trying to get the green light to seriously ramp up Xbox production. They’re looking at making an extra 4.8 million Xbox consoles and parts every year! It’s not just consoles either – they’ll also be building some other electronic bits and pieces, but they haven’t said exactly what those are yet.
Luxshare-ICT also aims to significantly increase its gaming console production – potentially by 4.5 million units annually – by establishing a new factory in Vietnam. They plan to begin this expansion next year, according to recent reports.
In addition to increasing console production, these companies are also working to manufacture more mobile phones and smartwatches. Fushan reports that these initiatives have resulted in factory improvements.
It’s notable that the increased production seems to include Xbox handheld PCs like the ROG Ally and Ally X, not just traditional consoles. This production increase is happening despite a current shortage of DRAM, a crucial component in tech devices.
A global shortage of memory chips is driving up the price of RAM worldwide. Recent reports suggest this shortage could also increase the cost of Xbox Series X/S consoles, potentially raising the price to as much as $649.99.
A recent surge in memory demand is being linked to OpenAI’s agreement with Samsung and SK Hynix to purchase approximately 900,000 DRAM wafers each month. While other companies are rushing to secure enough memory to maintain their production levels, Microsoft apparently didn’t anticipate this situation and hasn’t made any preparations.
According to the YouTube channel Moore’s Law is Dead, Microsoft hasn’t prepared well for future Xbox demand. They report that Xbox prices could increase, or the consoles could become unavailable, as Microsoft sales representatives have warned sources that this is likely to happen very soon. If you’re hoping to buy an Xbox at the current price, it might be best to do so quickly.
The report suggests Sony has avoided immediate memory shortages by proactively buying a large amount of RAM before prices increased. They anticipated having enough GDDR6 memory modules to last for several months.
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2025-12-04 17:41