Console Production Shakeup - Interesting Read

[robjoh]

Stromprophet said: I'm wondering if Nintendo has the same bargaining power Microsoft or Sony does when it comes to outsourcing production. From Sony and their standpoint, they have a lot of manufacturers that make other components and probably have an extensive supplier network. I'm not so sure about Microsoft, I know they have software manufacturers for Windows, and recently adding Zune. But they don't make much electronics. It is interesting though, considering Nintendo will likely need increased capacity in the future.

I don't think this is a problem for neither Microsoft or Nintendo, if they are playing their card right. Talking with manufactorers like this it is only one thing that matters: volym. As a factory owner you have to get your factory runing 24 h a day to really make a good profit. If any of these big boys appears and say that we want to manufactor 1 million of our consol in your factory thay would get a good price.