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Could Microsoft Outsource Xbox 720 to Samsung?



It is no secret that the original Xbox 360 contained many “off-the-shelf” electronic components, from disc drives down to chips. This was probably a factor that caused the dreaded “red ring of death,” which Microsoft found so difficult to overcome. This failure cost the company upwards of a billion dollars.

So, it would make sense to outsource most of the production of the device, and create a contract which applies all electronic failure blame to the manufacturer of that device.

As a software company, Microsoft is in the best position to do this, and recently announced the new Microsoft Surface 2.0, which is in fact being manufactured by Samsung. This means that the two companies are already venturing into this business together, so what is stopping them from doing it again, but this time with a home console?

Perhaps history may stop this from occuring, the tale of Nintendo and Sony in the early days of the original Playstation may be a factor, and will Microsoft allow a third party so close into the workings of one of their biggest money makers? Only time will tell, but we personally would welcome an Xbox that is manufactured by a tried and tested company like Samsung. Let’s face it, it’ll probably be a hell of lot more reliable out of the gate!

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Categories: Featured, Gaming, News

6 Responses so far.

  1. brad says:

    I just registered because you are a fool. I get that you love video games but Xbox is far, far from Microsoft’s big money maker. They have this little thing called Windows which makes them some pretty good coin.

    • I think it’s fairly obvious that Windows makes Microsoft the majority of their money, as well as their other software such as Office. But if you read carefully, the article says, “one of their biggest money makers,” which in no way means “THE biggest money maker.”

  2. [...] more on this rumor in full head over to Gadgehit.com who argue a good point that Microsoft should probably look to a third party like Samsung for [...]

  3. [...] to in 2012 The biggest over-hyped console stinkers of 2011 Top 10 Iconic video game characters Could Microsoft outsource the next Xbox to Samsung?VideosSuper Street Fighter 4 Arcade Edition 2012 update trailer Shinobi 3DS Unlock the secrets [...]

  4. [...] this could be the main problem, the RROD has cost Microsoft billions and a new path would be great.Gadgehit reports that the best option is to outsource, and believe Samsung would be a good partner. The two [...]

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