New reports indicate that Foxconn's factory in Vietnam is ready to produce over 4 million Xbox consoles for Microsoft. The relocation of production aims to reduce the increasing costs and tariffs affecting the company's profits from console sales.
Xbox production is currently unprofitable: due to high tariffs and rising component costs, Microsoft loses more on each console sold than in any previous period. In 2025, prices for the Xbox Series have already increased twice — currently, the Series X model is available for $800.
Foxconn can help reduce these losses. Microsoft, Sony, and Nintendo are moving some of their production to Vietnamese factories to avoid high tariffs on Chinese products.
The new production cycle may also prepare the platform for the next generation of Xbox, which will operate like a Windows 11 PC, offering an "Xbox console experience."
