Report: Microsoft To Settle New Deal With Foxconn To Boost Manufacturing For Xbox

At Xbox, the users that back the platform are facing drastic changes to how Microsoft prices its selection. Earlier this fall, it was confirmed that new price jumps are to roll out ahead of the holiday season. This followed the previous price increase that hit earlier in spring 2025. Probably as a result, Xbox was knocked out of the top 3 Black Friday leading consoles to the NEX Playground console.

Elsewhere, there has been other changes to how Xbox is viewing its platform for store shelves. One in Xbox Game Pass: its Ultimate tier virtually doubled its price to now costing $30 per month for the premium subscription. Additionally, developers are feeling the effect with the developer kits for Xbox Series X|S now costing $2,000 as well.

And as tensions continue to grow with tariffs across the global market, console manufacturers are finding new ways to produce hardware and still be financially inept. Recently, it was reported that Microsoft is in the works to establishing a new deal with Foxconn in Vietnam to produce hardware in bulk.

According to Reuters, Foxxcon & Luxshare has submitted a new permit to expand its production in the region. Under subsidiary Fushan Technology, this arrangement per the document intercepted reveals roughly 4.8 million devices are to be produced as part of the deal for Microsoft. The arrangement is to bring addition manufacturing to consoles, controllers, and even Xbox Cloud Gaming architecture.

Outside of the China trade war, another obstacle that many platform holders will face is the widening gap in the supply chain for RAM. Recently, Micron announced its exit from producing for the consumer market in the rise of AI. “Micron has made the difficult decision to exit the Crucial consumer business in order to improve supply and support for our larger, strategic customers in faster-growing segments.” You can read the full press release by heading here.

What are your thoughts on this new deal with Microsoft & Foxconn?

Source: Reuters