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Asustek subsidiaries reportedly land OEM orders for Xbox 360 consoles

Pegatron Technology and Unihan Technology, two OEM makers spun off from Asustek Computer, have reportedly secured OEM orders for Xbox 360 consoles and will undertake the production at their factories in Suzhou, China, with an initial monthly shipment volume of about 500,000 units, according to industry sources in Taiwan.

Pegatron and Unihan, however, declined to comment on the report.

Wistron originally was the Taiwan-based OEM maker of Xbox 360 consoles, but decided to discontinue the OEM production due to gross margins being too small, the sources pointed out. Despite thin profitability for OEM production of Xbox 360 consoles, Pegatron and Unihan are willing to do so in line with their 2008 revenue goals, the sources indicated. Singapore-based Flextronics International is currently the largest OEM maker globally of Xbox 360 consoles, the sources said.

In addition to the Xbox 360, Pegatron and Unihan are undertaking OEM production of PlayStation 3 consoles for Sony, the sources noted.

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Maybe Wistron deciding to discontinue 360 production is what has caused the recent shortages in NA. With these new OEMs starting production that should end the shortages, and explain why Microsoft are confident there will be plenty of stock for April.