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XBOX Arrives In Europe!

by Peter on Nov. 29, 2001 @ 3:43 p.m. PST

In a major milestone for Xbox, Microsoft today announced that Xbox production is now fully up and running in Europe. Xbox is Microsoft’s future-generation video game system that delivers never before seen gameplay experiences.

The announcement was made at a press conference today in Sárvár, Hungary, the site of Flextronics’ European Xbox manufacturing facility. European reporters and officials from Xbox, the Hungarian government, and the strategic global manufacturing partner for Xbox, Flextronics, gathered to watch some of the first Xbox consoles roll off the European production line.

The facility, the first-ever video game console factory located in Europe, is currently producing consoles for the North American market (in tandem with the Flextronics Xbox manufacturing facility in Guadalajara, Mexico) before switching to the production of European specification consoles for the upcoming European launch on 14th March 2002.

The Hungarian facility, operated by Flextronics as part of a worldwide manufacturing partnership with Xbox, is more than 10,000 square metres and has created approximately 2000 employment positions in Hungary. The facility is in operation 24 hours a day, 5 days a week, and can produce in excess of 15000 consoles per day-2 consoles a minute.

“Today is the birth of Xbox in Europe,” said Sandy Duncan, Vice President, Xbox Europe. “Thousands of consoles for the European market will be coming off the assembly line here in Sárvár. It’s a great day for Xbox in Europe and for European gamers.”

“We’re proud that Xbox has the first video game console manufacturing facility in Europe,” said Duncan. “It enables weekly replenishment of stock for Europe from a local source. Units can be delivered anywhere in Europe within three days in a way that maps to demand patterns, and will help us ensure significant Xbox quantities for launch day and beyond. The weekly replenishments are of huge benefit to gamers - the ability to provide adequate stock replenishment means no disappointment on launch day and in the weeks to follow. Weekly replenishments also benefit European retail and 3rd party publishing partners, facilitating a well-executed launch, adequate stock and a smooth ramp-up in installed base.”

“We’re pleased to be in partnership with Flextronics as part of a global deal that includes the North American manufacturing facility in Guadalajara, Mexico,” said Duncan. “They are a best-of-breed partner with unrivalled professionalism, manufacturing expertise and most importantly the ability to deliver significant day one launch quantities as well as meeting weekly replenishment requirements.”

•“Flextronics is proud to play such a significant role in the success of Xbox in Europe and beyond,” said Humphrey Porter, President, Flextronics Central and Eastern Europe. “Our manufacturing sites in Hungary are ideally positioned to deliver significant quantities for the European launch as well as other parts of the world-wide roll-out. Speed to market is essential to our customers’ success. Flextronics' experience in the EMS (electronic manufacturing services) industry, our global footprint and our focus on Industrial Parks makes it possible for us to meet this need and to offer more than just a manufacturing solution. Our ability to deliver substantial quantities on a weekly basis from day one and beyond will ensure that stock is adequate and that the launch is smooth.”

•The location of the plant brings significant employment to the region.

•“We are happy that Microsoft and Flextronics chose to locate the Xbox manufacturing facility here in Sárvár, a move which created approximately 2,000 employment positions in Hungary,” said Mihály Varga, Hungarian Minister of Finance. “We offer a skilled workforce and a strategic location. We’re looking forward to a long and fruitful partnership with Microsoft and Flextronics.”

About Flextronics
Headquartered in Singapore, Flextronics is a world-class Electronics Manufacturing Services (EMS) provider focused on delivering operational services to branded technology companies. With fiscal year 2001 revenues of USD $12 billion and approximately 70,000 employees, Flextronics is a major global operating company with design, engineering, manufacturing and logistics operations in 28 countries and four continents. This global presence allows for manufacturing excellence through a network of facilities situated in key markets and geographies that in turn provide its customers with the resources, technology and capacity to optimise their operations. Flextronics’ ability to provide end-to-end operational services that includes innovative product design, manufacturing, IT expertise and logistics has established the Company as the top-tier EMS provider.

For further information, please visit the Flextronics website.

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