"New factory to help Microsoft ramp up shipments, says Moore

Microsoft's Xbox chief Peter Moore has provided updated guidance for hardware shipments of the Xbox 360, saying that the firm is bringing a new factory online with a view to shipping up to 5.5 million consoles by June 30th.

Speaking during Microsoft chairman Bill Gates' presentation at CES in Las Vegas last night, Moore announced that manufacturing firm Celestica will begin production of the Xbox 360 early next month, joining existing manufacturers Wilstron and Flextronics.

The addition of Celestica should help the firm to meet demand for the console, which has been sold out in North America and Europe since its launch late last year, and is believed to have shipped around 1.3 million units worldwide to date.

Some analysts have expressed doubt over Microsoft's original target of shipping 2.5 to 3 million units by the end of March, especially given the possibility that as few as 200,000 new units may ship in North America in January, according to comments made by Banc of America Securities analyst Gary Cooper recently." [more]