Xbox supplier told to cool it on components

A FIRM THAT MAKES video encoder chips for the Microsoft Xbox was told that it couldn't expect the software giant to buy any more of its components during the first half of this year.

A report on the Dow Jones Newswires yesterday said that Focus Enhancements was told that unit sales of the Xbox were poorer than Microsoft had forecast.

Focus Enhancements makes the FS453/454 video encoder chips for the Xbox.

And if Focus Enhancements is in this position, we'd expect other suppliers - including chip giant Intel and graphics colossus Nvidia - have been told similar things too.

The console market's strongest period is obviously in the run up to Yuletide. µ

L'INQ
Focus Enhancement