Technology website Digitimes has reported that OEM firms Pegatron Technology and Unihan Technology have won a contract to produce new Xbox 360 consoles at their factories in Suzhou, China, with an expected initial monthly shipment of around 500,000 units.

The Asustek Computer owned manufacturers, who also help produce the PlayStation 3, have made no official announcement concerning the rumors. However, Microsoft has publicly admitted supply problems since Christmas.

Microsoft group product manager Aaron Greenberg told Reuters in a recent interview that by April, Xbox 360 supplies would be back in "a very healthy inventory situation."

Microsoft has used a variety of different manufacturers for the Xbox 360, with original OEM maker Wistron discontinuing production over concerns at low profitability. This has left Singapore based Flextronics Internationals as the largest supplier, along with Toronto headquarted Celestica.

Source: tgdaily