Lite-On IT lands OEM orders for Xbox 360 built-in DVD-ROM drives

Lite-On IT has reportedly secured OEM orders for DVD-ROM drives to be built into Microsoft Xbox 360 consoles, with monthly shipments of 0.8-1 million units to begin in the third quarter of 2007, according to industry sources in Taiwan.

Lite-On IT was unwilling to confirm the report saying that the company will not comment on any reports concerning orders due to non-disclosure agreements signed with clients.

The built-in DVD-ROM drives for the Xbox 360 have been produced by two OEM makers, Toshiba-Samsung Storage Technology (TSST) and BenQ, the sources indicated. Lite-On IT took over BenQ's optical disc drive business unit in mid-2006 but did not take over the OEM manufacturing rights for Xbox 360 because it was required to obtain new certification from Microsoft, the sources pointed out.

Although Lite-On IT will succeed BenQ as the secondary OEM maker of the built-in DVD-ROM drive, the company stands a chance of displacing TSST to take the primary status based on its monthly shipment volumes and Microsoft's 2007 sales goal of 15 million Xbox 360 consoles, the sources analyzed. In order to minimize the production costs of Xbox 360, Microsoft may increase Lite-On IT's OEM production of the DVD-ROM drive, the sources added.

News-Source: http://www.digitimes.com