Xbox 360 Taiwan Pressure

Microsoft is creating problems in Taiwan based on recent moves with its Xbox 360 game console, according to separate reports. Although the company already promised this summer to repair overheating models for free for up to three years, a new claim suggests the American firm is now cracking down on Taiwan repair centers and forcing increased scrutiny of Xboxes before they are returned to their owners. Microsoft is concerned that systems may either be modified during the repair processs to allow pirated games or that some systems may not need repair at all, the report notes. As a result, repairs that would normally have taken a week now allegedly require a full month and are causing frustration with gamers and retailers alike.

Recent price drops for the Xbox 360 may also be creating trouble both for Microsoft and its Taiwan suppliers, a second report adds. Wistron, which supplies as much as 40 percent of Xbox parts from the island, has reportedly backed out of producing the machine after refusing to bow to Microsoft demands for lower prices during negotiations this summer. Wistron decided that it stands to benefit more from abandoning the contract altogether, anonymous sources claim. Switching to alternate contracts would let Wistron improve both its profit margins and expand its manufacturing abilities to include different technology.

No indication has been given as to whether Microsoft's alternative suppliers, Celestica and Flextronics, will pick up the slack created by the drop. Microsoft has not commented on this or allegations of delayed repairs.

By Electronista Staff