Microsoft is adopting various strategies to be more cost competitive with its Xbox 360 game consoles, with moves including asking for a price reduction from Taiwan-based component makers and working with Lite-On IT for its add-on HD-DVD drive, according to industry sources.
Microsoft has requested its component makers and EMS providers to lower their component quotes by an average of 5-15% on a quarterly basis, said related makers.
In addition, Microsoft is eying the cost competitiveness of Taiwan-based optical disc drive (ODD) makers for its add-on HD-DVD drives, with Lite-On IT being the most likely beneficiary, sources said.
Lite-On IT declined to comment, citing client confidentiality, but indicated it will start shipping consumer ODDs in the first quarter of this year.
Article translated by Carrie Yu and edited by Michael McManus
