Recent reports indicate that Foxconn’s factory in Vietnam is ready to produce more than 4 million Xbox consoles for Microsoft. The shift in manufacturing is intended to curb rising costs and tariffs that are cutting into the company’s console profit margins.
Xbox production is currently unprofitable: steep tariffs and higher component costs mean Microsoft is losing more on each console sold than at any previous time. In 2025, Xbox Series prices have already been increased twice — the Series X is currently priced at $800.
Foxconn could help reduce those losses. Microsoft, Sony, and Nintendo are moving portions of their manufacturing to Vietnamese facilities to avoid the hefty tariffs applied to products made in China.
The new production cycle could also set the stage for the next-generation Xbox, which may operate like a Windows 11 PC while delivering the traditional “Xbox console” experience.
Source: iXBT.games