WSJ: Getting Xbox 360 to Market

[pipo]

http://online.wsj.com/public/article/SB113227316117900733-Ii1Btd6V5mUVW_WMjTwpajE2_G4_20061117.html?mod=tff_ main_tff_top

The Xbox operation is centered at two factory sites in southern China, each run by separate contract manufacturers -- Flextronics Corp. and Wistron Corp. -- as a hedge in case one stumbles. Also near these sites are makers of many of the parts, from cooling fans to capacitors, and the 30 or so pieces of plastic that form the box. Using local suppliers means a lower risk that parts will arrive late. Local parts also eliminate the need to navigate Chinese import rules.

Microsoft and IBM started production of the processor -- the heart of the Xbox 360 -- in early July, gradually increasing production over the summer. Those chips now join a parade of other parts flowing to the Chinese factories: hard drives from Japan and Korea; graphics chips that were designed by Ontario, Canada's ATI Technologies Inc. and come from Taiwan; and buttons for the machine's controller from Lacrosse, Wis.

In all, 250 suppliers make parts for the machine. Some 25,000 workers world-wide have roles in making either the parts or the Xbox 360 itself, Mr. Holmdahl says. The two Chinese factories started rolling out finished Xbox 360s in August and now push out tens of thousands of units a day.

[Powderkeg]

The two Chinese factories started rolling out finished Xbox 360s in August and now push out tens of thousands of units a day.

If we say they averaged 10,000 systems a day since September 1, that would be 790,000 units as of today.

Seems strange that there would be such a limited supply.

[pipo]

The 700000 number also pops up in the PDZ stories as being the US launch shipment.

The article also states they do shipments by boat. How long would that take?

[Gholbine]

The 700000 number also pops up in the PDZ stories as being the US launch shipment.

The article also states they do shipments by boat. How long would that take?

A few weeks I'd say.

[Alpha_Spartan]

If we say they averaged 10,000 systems a day since September 1, that would be 790,000 units as of today.

Seems strange that there would be such a limited supply.
Worldwide launch. The shortages aren't due to MS not producing enough systems, it lies with their insistance of being in all three markets before Christmas.

[pipo]

Surely 100000 units are enough for Japan. ;)

[Alpha_Spartan]

100,000 might be a bit too much. But if Microsoft thinks they need Japan to put some hair on their chests, so be it. Hopefully at the end of this gen, they'll figure out that their just pissing in the ocean and thinking that's what makes it salty.

[drpepper]

If we say they averaged 10,000 systems a day since September 1, that would be 790,000 units as of today.

Seems strange that there would be such a limited supply.

Well, i recall in an interview with either Moore or Allard stating that the 10000/day rate would increase for the coming weeks of the release. but I guess we'll wait and see how that pans out once the release date hits.

[NavNucST3]

Tens of thousands not 10,000, that is not a semantic difference. It is plausible that each facility outputs at least 10,000 per day.

[scooby_dooby]

If we say they averaged 10,000 systems a day since September 1, that would be 790,000 units as of today.

Seems strange that there would be such a limited supply.

tens of thousand, not ten thousand.

But, I heard that production was about 10,000/day a month or 2 ago, and that they planned to ramp up over time. It's gotta be more now, 20 or 30thou/day probably.

[Powderkeg]

Tens of thousands not 10,000, that is not a semantic difference. It is plausible that each facility outputs at least 10,000 per day.

I am aware of that. I am also aware that they haven't been running at that production rate the entire time, which is why I said an average per-day production.

I also wanted to be conservative with the numbers, just to make a point.

[Powderkeg]

Worldwide launch. The shortages aren't due to MS not producing enough systems, it lies with their insistance of being in all three markets before Christmas.

Shouldn't matter.

Let's say they have 800k units ready by tomorrow. They've got 2 weeks before the first one is sold in Europe and almost a month before the Japanese launch, and they are producing over 10,000 units per day.

Even if you took 300k for Europe out of what they have right now you are still looking at 500k for day 1 of the US launch with a month to get Japanes 250k or so units ready.

If these numbers are true, there shouldn't be any discussion of shortages. MS shouldn't have any trouble at all putting 500+k units on store shelves by Monday night.

[hadareud]

The article also states they do shipments by boat. How long would that take?

China to England takes approx. 4 weeks, and up to a week at customs. To the US it's very similar (in any case, give or take a few days. Shipping times via boat are never set in stone).

[Powderkeg]

China to England takes approx. 4 weeks, and up to a week at customs. To the US it's very similar (in any case, give or take a few days. Shipping times via boat are never set in stone).

China to the US is about half that time. You've got to remember it's a straight sail from China to the US while China to anywhere in Europe requires sailing around some major land masses (Like all of Europe and Asia, and maybe Africa as well).

[hadareud]

China to the US is about half that time. You've got to remember it's a straight sail from China to the US while China to anywhere in Europe requires sailing around some major land masses (Like all of Europe and Asia, and maybe Africa as well).

While this is true it usually still takes around 3 - 4 weeks (well at least the chinese shipments we get to our US Headquaters at my work, I can't tell if this is true in every case.).

[drpepper]

Holy crap. Wouldn't it be faster to ship by FedEx?

<runs away...>

[scooby_dooby]

They ship by both Air and by Sea...

[hadareud]

They ship by both Air and by Sea...

Yeah, they've even chartered a couple of planes IIRC. But I guess the majority will come by boat, there's just too much of a diference in price not to ..

[jvd]

we were told after launch shipments every month .

Popular theory is that the japanese and european units are already stock piled and sailing to thier destinations and we have one factory supplying the usa and the other japan / europe .

We've been getting units in (one or two at a time) since the end of october

[scooby_dooby]

Yeah, they've even chartered a couple of planes IIRC. But I guess the majority will come by boat, there's just too much of a diference in price not to ..

a couple? According to Moore they've booked every single 747 they can get their hands on. Probably just for launch though

[Powderkeg]

a couple? According to Moore they've booked every single 747 they can get their hands on. Probably just for launch though

I bet if Mr. Gates transferred a few million to Bush's bank account they could use Air Force One.

[Synergy34]

we were told after launch shipments every month .

Popular theory is that the japanese and european units are already stock piled and sailing to thier destinations and we have one factory supplying the usa and the other japan / europe .

We've been getting units in (one or two at a time) since the end of october

So how many employee's say "Hey, that one is mine anyway, might as well take it home now then let it sit around the store" :p

[scooby_dooby]

I bet if Mr. Gates transferred a few million to Bush's bank account they could use Air Force One.

you mean cheney.

OT: did anyone watch Jon Stewart last night? Man he made a fool out of Dick Chaney, hilarious stuff....ok back on topic

[drpepper]

I bet if Mr. Gates transferred a few million to Bush's bank account they could use Air Force One.

Screw that, just hollow out a 747 and you have better storage capacity. Imagine the red tape you'd have to go through if they went that route (Air force 1)! :shock:

[jvd]

So how many employee's say "Hey, that one is mine anyway, might as well take it home now then let it sit around the store" :p\

None , we can't ring them up till they are active in the system .

We do have an opened one in the back that we have been playing games on .

What sucks is that i leave sunday at 5am and my little neibor (well she is 21 now ) has to pick mine up .

Its not fair !

[Powderkeg]

Screw that, just hollow out a 747 and you have better storage capacity. Imagine the red tape you'd have to go through if they went that route (Air force 1)! :shock:

Actually the best idea would be to bribe Bush into allowing MS to borrow a couple of C5 Galaxy cargo planes for a few days. They'll hold more than some tiny 747.

[Bill]

So Ebay auctions..what's the demand gonna be? :lol:

[Powderkeg]

Don't know, but I just got back from Gamestop with my extra controller, battery pack, plug and charge kit, and 4 games. I asked how many systems they were getting in and they said only 14.

Good thing I'm #11 on the list.

If that is indicative of launch day I would expect Ebay prices to soar, but if MS can keep a steady supply flowing in then the demand would drop very quickly.

[Shifty Geezer]

Last I read eBay was up to $550. That's before the system's launched and shortages are known.

[pipo]

More data:

Many Xbox 360 parts are the result of work by multiple suppliers. For example the graphics and memory controller (also known as the northbridge) is designed by ATI in Canada.

However all actual manufacturing is handled in Taiwan, starting with Phoenix Precision Technology, which is reported to be making the substrate, the basic material on which chips are built.

Taiwan Semiconductor Manufacturing Co then fabricates the chips. The company will turn out about 20,000 12-inch wafers, each packed with hundreds of chips, during the fourth quarter.

Finally, the wafers are trucked a short distance to Advanced Semiconductor Engineering Inc. ASE separates the chips, packages them in a form suitable for mounting on a printed circuit board, and tests them, before sending them on to Wistron or other contract manufacturers.

http://www.computing.co.uk/vnunet/news/2146351/xbox-360-builders-reap-rewards

[Jawed]

According to the Money Programme about XB360 that was shown on UK TV a few weeks back, the XB360s on the ship are going to be late for launch (manufactured late, I think), so they've lined up planes to get XB360s into European stores for launch, then, presumably, the ships will make up the second wave, whenever that is, after Christmas presumably.

Jawed