Xbox 360 and Wii orders ramping up, say chip makers

[Farid]

Here's a news for thoses interested in the Semiconductor Market:
http://www.digitimes.com/bits_chips/a20060707PB205.html

ATI, which supplies the graphics chip for the Wii, reported that the contribution from its consumer electronics chips business this year grew to 20% from last year's 15%, according to a Chinese-language Commercial Times report.

Pixart Imaging (PXI), an affiliate of United Microelectronics Corporation (UMC) and the remote sensor chipset supplier for the Wii, was cited by the Commercial Times as saying that its shipments may reach a million units in August.

SiS, the southbridge chip supplier for the Xbox 360, is also cited in the report as saying that orders started picking up from July.

The holyday season is already doing its effect for the Commercial Semiconductor Vendors, it seems.

 

[TheChefO]

SiS, the southbridge chip supplier for the Xbox 360, is also cited in the report as saying that orders started picking up from July.

Sweet! So I guess those 360 systems aren't just collecting dust on store shelves afterall.

 

[RancidLunchmeat]

Sweet! So I guess those 360 systems aren't just collecting dust on store shelves afterall.

Sure they are.

MS just doesn't think there's enough of them sitting on shelves yet, so they keep building more.

 

[TheChefO]

Sure they are.

MS just doesn't think there's enough of them sitting on shelves yet, so they keep building more.

LOL - The true story emerges! Ms's plan to combat ps3?

Shelf Space!

If there's nowhere to put the stock of ps3's, then retailers just won't carry them! Brilliant!

 

[Powderkeg]

LOL - The true story emerges! Ms's plan to combat ps3?

Shelf Space!

If there's nowhere to put the stock of ps3's, then retailers just won't carry them! Brilliant!

When seen in that light the 2 SKU's plus the massive amount of peripherals makes perfect sense, doesn't it?

 

[TheChefO]

When seen in that light the 2 SKU's plus the massive amount of peripherals makes perfect sense, doesn't it?

Indeed - as long as they keep selling it will force retailers to make some tough decisions ... although the likely scenario is xbox shelf space will shrink and 360 space will grow.

But it's fun to have a good laugh every once in a while.

Seriously how many 360's are they making a month now? To think they're increasing supply when many thought 360's sales were slowing to a crawl and they were already making more than they were selling is a great sign of things to come. The q3/q4 lineup must be shaping up nicely! What was that mystery Rare game again?

good times - good times

 

[RancidLunchmeat]

although the likely scenario is xbox shelf space will shrink and 360 space will grow.

What is this mysterious 'xbox shelf space' you speak of?

 

[Powderkeg]

What is this mysterious 'xbox shelf space' you speak of?

It's that set of 2 shelves in the back of EB Games where all of the boxes say "Used" on them.

 

[BenSkywalker]

LOL - The true story emerges! Ms's plan to combat ps3?

Shelf Space!

I know you say that tongue in cheek, but do you realize what Proctor and Gamble have done to their respective industries doning exactly that? People think they have a choice in the US in terms of things like laundry detergent and other such items, P&G just found a way to take all of the shelf space with a bunch of different brands that 'compete' with one another. Some of the large scale suppliers, such as Coke and Pepsi- pay stores for shelf space. This is millions and millions of dollars paid out each year. I know you said it to be amusing, but the reality is that stealing shelf space from competitors is actually a very common route to cornering a market in the industry. Sony has done this in the past when they pushed the DC out of the electronics retailers by offering them pricing breaks on their electronics equiptment. It is very much a serious tactic, although it is one that MS doesn't have the muscle to pull off(although they do have the cash).

although the likely scenario is xbox shelf space will shrink and 360 space will grow.

AFAIK the XBox is out of production. Noone around my area has been getting in and they have been informed not to expect further shipments. It is possible that it is an allocation issue, but right now the pipe seems to be completely dry for new XB hardware.

To the broader point of course they are ramping production- if they don't outsell Sony and Nin this holiday season in Europe and the US by a considerable margin then it looks like they have lost this generation. It should be a given that they crush the sales of both the newcomers as they will be supply limited, but if they don't walk out of the holiday season with a greater then 70% installed base for the new generation they are in serious trouble(or at least, their strategy to launch early would have failed in no uncertain terms).

 

[ihamoitc2005]

Surprise

Sweet! So I guess those 360 systems aren't just collecting dust on store shelves afterall.

Target where I work for weekend job has 4 xbox360 sale for june (1 premium early june, 3 core final week june) and 1 premium for July week 1. This is surprise for me because normally no one wants core and before we have premium sellout before we sell core but now we have too much premium.

We have sold almost all PS2 (1 left last weekend) and have finished 2 DS lite shipments. DS lite has amazing sales. I think because of low price and DS compatible wireless Wii can have good chances. Also I think controller is amazing for all buyers.

 

[Titanio]

Interesting, because another article on Digitimes from a couple of days ago said slightly different things..but then different suppliers may see different things. Also had some info on PS3:

For game consoles such as Sony's PS3 and Xbox 360, local makers only expect demand for PS3-use passive components to grow from July, along with test production of the console, while continuing growth in demand for the Xbox 360 is still not strong enough.

http://www.digitimes.com/bits_chips/a20060706A4015.html

Also today, Digitimes had an article on Wii, including a list of apparent component suppliers:

CPU
IBM (co-developed with Nintendo)

Graphics chips
ATI Technologies

Console assembly
Foxconn Precision Components (FPC)

Cooling system
FPC

Connector
FPC

Cable
Foxlink

Power supply
Delta Electronics

Metal stamping parts
G-Shank Enterprise

Controller
FPC

http://www.digitimes.com/systems/a20060707A7038.html

 

[RancidLunchmeat]

Target where I work for weekend job has 4 xbox360 sale for june (1 premium early june, 3 core final week june) and 1 premium for July week 1. This is surprise for me because normally no one wants core and before we have premium sellout before we sell core but now we have too much premium.

We have sold almost all PS2 (1 left last weekend) and have finished 2 DS lite shipments. DS lite has amazing sales. I think because of low price and DS compatible wireless Wii can have good chances. Also I think controller is amazing for all buyers.

None of that surprises me at all. The market for a $399 console has dried up. The $299 core (and mem card) is a price and package that people have become trained to pay for new consoles.

 

[Titanio]

Didn't want to make a thread since it's not major news, but it's noteworthy enough..always reassuring to hear stuff like this in the run up to a launch:

http://www.digitimes.com/bits_chips/a20060710PB206.html

Taiwan printed circuit board (PCB) makers Unimicron Technology and Nanya Printed Circuit Board (NPC) will start shipping PCBs for Sony's PS3 in the third quarter, with samples already approved by Sony, according to the Chinese-language Apple Daily.

Compeq Manufacturing is still waiting for sample approval from Sony for PCBs to be used in the new game console, the paper said.

That'd mean PCB shipments would start any time from now, really (Q3 = Jul/Aug/Sep). Presumably this is the motherboard?

The article also notes a potential PCB manufacturer for Wii (Foxconn).

 

[TheChefO]

None of that surprises me at all. The market for a $399 console has dried up. The $299 core (and mem card) is a price and package that people have become trained to pay for new consoles.

I'd say the market for $400 console with this software library has dried up. We'll have to wait and see what the fall lineup does for them in a few months.

 

[elementOfpower]

360 sales will pick up around Sept/Oct when Gears of War, Test Drive Unlimited, Dead Rising and other stellar titles begin to hit store shelves.

When you look at the selection of games right now, there aren't any that really make you go "WOW--I gotta have that!" but that will all change when Gears of War is on display in your local Best Buy.

Concerning PS2 sales, God of War 2 and other good looking games continue to spill out for the system which is one reason it continues to sell so well. That and the low price tag compared to the 360, of course.