Report: Microsoft and Foxconn Seeking Permit to Produce 4.8 Million Xbox Devices Annually in Vietnam - News
by William D'Angelo , posted on 04 December 2025 / 4,275 Views
Microsoft might be looking to move its manufacturing of Xbox consoles to Vietnam and to potentially increase production, according to a new report from Reuters.
Foxconn, a subsidiary of Fushan Technology, in partnership with Microsoft is looking to get a permit to expand production to manufacture 4.8 million Xbox gaming devices annually in Vietnam. This is according to a company document that was discovered.
It is possible the figure includes not just Xbox consoles, but also controllers, headsets, and other Xbox accessories.
However, If the 4.8 million number is all consoles that is about how many Xbox Series X|S consoles were sold worldwide in 2024, according to VGChartz estimates. However, sales have fallen significantly this year with figures down nearly 40 percent year-to-date through October.
China's Luxshare-ICT is also planning to produce up to 4.5 million video game consoles per year at a factory in Vietnam starting from 2026. It isn't known which consoles will be produced at this factory.
A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can follow the author on Bluesky.
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4.8 million seems quite optimistic?
I think it would mean Magnus and not necessarily only Series X|S.
There were rumours back along that Microsoft have stockpiles of Xbox series consoles and were not interested in re-starting manufacturing those consoles because of the expense so were going to manage existing inventory until the end i.e. increase prices. A bit like Nintendo where they didn't want to sell the wii u at a loss so simply held their price and accepted much lower sales for the hardware until the Switch came out. When a console has failed commercially you can price cut and lead to huge losses or you can just adapt to a lower amount of sales, far less losses with the second option. I suspect this is all about Magnus and not related to the Xbox series consoles at all. I feel Microsoft has pretty much given up with the Series consoles in most markets they are a complete failure and in a low amount of markets they are in reasonable third place but its a minor player at best. Many retailers even in the US have completely stopped selling them and in the US I think some retailers cleared out the X model for as low as $279.
I think this includes controllers as well.
1) I think its referring to their next console
2) Its likely "up to" 4.8 million and not a minimum number... so it could be drastically less
Press X to dodge Tariffs
Exactly, and hence why the optimistic targets. Imagine if Microsoft could decrease the price of each system by $50 (compared to the launch prices) instead of where we are now - with prices like $150 above them. Moving manufacturing to Vietnam could possibly allow that.
I have to wonder if MS even cares enough to want to do that though. That's a move made to sell more hardware and I'm not sure MS even cares about that.
You might be absolutely right, but right now they don't even have the option.
Give up MS, Xbox Series hardware is dead.
Try again next gen...
Small correction. Give up MS,Xbox is dead,stop trying to make Xbox happen, it's not going to happen" :P
Ah yes.....the pay-to-win method.
What's even more funny is that they always have way more pockets, from the very start compared to their competitors, yet they can't seem to win once or come back, and what looks like now, can never.
There's only so much loss daddy-Microsoft is willing to take before stopping funds to their son, Xbox, for making poor decisions.
vengeance? why do microsoft think this is a war?
no wonder valve won the PC market
microsoft, since the birth of the PC era has always been evil, even in their failed attempt at mobile they have been evil
they are too focused on gaining market shares instead of delivering greatness
their PC store has been TRASH for a decade with no signs of improvemnts
they even ruined Windows with the version 11 LOL
my next console is either steam deck 2 or PSP 2, what ever comes first
When someone says "with a vengeance" in English, it's usually used as a phrase. It means to do something with extreme effect, powerful, authoritatively etc.
Why
They sold less than 150k consoles last month
Whoever is running Microsoft’s Xbox division should consider a new career
Isn’t Foxconn the one with large nets placed outside their factories b/c workers will…um…attempt to jump out of the building?
dont get captain started
Si but then again that's probably not just them.
Yup.
Foxconn are a huge OEM manufacturer for a lot of brands but the time of suicides was most connected to iphone production. I remember seeing a video on youtube in China of someone who became homeless as couldn't stick the job and couldn't get another so had to leave his flat and the area I believe in the hope of work elsewhere but don't know the outcome. Absolutely soul destroying repetitive work it seems day in day out assembling electronics with long hours and little leisure time. Mostly sleep and work. I think there was talk of banning overtime back then but many relied on that to make ends meet.
I don't want Xbox hardware to die so I do hope they can reach that figure. I think 5m is possible if there are 2 variants (high spec+ handheld)
Me too, we need competition and, for all the hate Xbox receive, I´ve always loved their hardware and would like to continue owning the newer ones.
Sales this holiday season have gotta be super low. There have been no widespread discounts, or anything else that leads me to believe they are even really trying to sell consoles.
Where are those people who were saying that the prices increases had nothing to do with the Trump tax?
Tariffs have affected all companies that manufacture hardware, that’s undeniable. But Microsoft is the only one (up until today) not making efforts to subsidize some of the impact. On the contrary, their new 30% profit margin policy has made the Series S more expensive in some places than a PS5.
I do wonder if this 30% thing is a red herring and the real issue is a huge amount of unsold consoles in warehouses and they want to manage that inventory until the end of this generation rather than make more consoles at huge expense. The thing is it would be a lot more expensive now to manufacture new Series consoles so yes they could price higher because of that or they could price higher to manage inventory its hard to know the truth except what is the better story in the media, 30% increase in profits on consoles or stuck with loads of old consoles that are selling at a snails pace? We know many retailers have given up on Xbox so sales are reducing at a rapid rate and they were terrible before for retailers. I think the rumours about large stocks of consoles in warehouses is true and that Microsoft manufactured too many consoles hoping to have been a more successful console. At this point with Xbox series sales collapsing they aren't going to be manufacturing many if they do.
Let's all hope it an early April's fool. m$ need to stop wasting everyone time and money and start their 3rd party initiative!!
is it possible xbox devices can be made cheaper somewhere than made in china?
