Two days ago, a low-key Reuters news article described recent efforts made by Fushan Technology (a Foxconn subsidiary) and Luxshare-ICT (a Chinese firm) to expand games console production facilities in Vietnam. Insiders believe that Fushan Tech is seeking permission to bolster an existing plant—leaked documents, submitted to a local government body, mention a major manufacturing goal. Once permitted, the Foxconn off-shoot supposedly wants to produce "up to 4.8 million Microsoft Xbox gaming devices (per annum), as well as "parts of the consoles, and other unspecified electromagnetic devices." Allegedly, Luxshare-ICT has lodged a similar request—pending a decision regarding an upgraded facility's annual "(up to) 4.5 million game consoles" production target.
Ongoing trade wars have caused manufacturers to pivot away from a traditional reliance on Chinese hubs. Instead, facilities located in nearby nations offer relief from severe tariffing. Jez Corden, of Windows Central fame, has weighed in on the topic of an alleged geopolitically-motivated change of plans at Microsoft's computer games division. Availability of current-gen Xbox consoles has declined across a fair number of regions, with big name retail outlets seemingly turning their back against the big green brand. Corden noted a decline in hardware supplies: "posted nearly every quarter for the past couple of years. To make matters worse, (Xbox leadership) was forced to raise prices a few months ago, making the Xbox Series X, and in some cases, the less powerful Xbox Series S more expensive than some PS5 models. Tariffs have played a huge part in making Xbox Series X|S less competitive."