Lite-On IT, the largest Taiwan-based maker of optical disc drives (ODDs), has received additional OEM orders for internal DVD-ROM drives for use in Xbox 360 consoles from Microsoft and consequently has given top priority to Microsoft's orders in allocating its total production capacity, according to sources from the ODD components industry in Taiwan.
Lite-On IT response said that it keeps a policy of not commenting on any reports about its orders.
In light of better than expected sales of Halo 3, Microsoft has decided to strongly promote sales of Xbox 360 consoles during the traditional peak period prior to Christmas and therefore has placed additional OEM orders, the sources explained.
To meet Microsoft's urgent demand, Lite-On IT has allocated production capacity solely for turning out one million Xbox 360 DVD-ROM drives a month, the sources pointed out. But the capacity is still not enough, and thus Lite-On IT has dedicated additional capacity, the sources indicated. However, the situation has conflicted with Lite-On IT's production of PC-use ODDs, the sources noted.
Lite-On IT is the third OEM maker of Xbox 360 DVD-ROM drives having started shipments in June-July with an initial monthly volume of 300,000-500,000 drives, the sources said. Shipments in September were already likely close to one million drives, not including the additional orders, the sources indicated.
Microsoft has also placed additional orders with Wistron, a Taiwan-based assembly maker of Xbox 360 consoles, the sources indicated.
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