Wistron to Discontinue Production of Xbox 360?

According to an Economic Daily News (EDN) report, Winstron is likely to gradually discontinue the production of Xbox 360 games consoles for Microsoft in 2008, partly due to declining profits on production the hardware for the software giant. DigiTimes.com got access to the report and translated the following:

The phase-out of Xbox 360 orders would not have significant impact on Wistron's revenues since the production of the games console currently accounts for about 10% of Wistron's total revenues, the paper said, citing analysts at Taiwan securities houses. Wistron is expected to record revenues of NT$280 billion (US$8.5 billion) in 2007, with a new EPS (earnings per share) of NT$5.45, the paper indicated.

Wistron is one of three manufacturing houses that produce the Xbox 360 system for Microsoft. The other two are Flextronics and Celestica.

Wistron, as well as Flextronics, were partners from the first iteration of Xbox, while the relationship between Celestica and Microsoft is newly formed.
Wistron to Discontinue Production of Xbox 360? - Xbox