Microsoft is moving Xbox production to Vietnam through Foxconn's Fushan Technology, which wants approval to make 4.8 million units per year. The shift helps dodge tariffs and component price spikes hitting consoles made in China, and it covers everything from the actual boxes to controllers and headsets.
Luxshare-ICT also plans a Vietnamese factory cranking out 4.5 million consoles annually starting in 2026, though nobody knows which brand yet. Trade wars keep jacking up prices for RAM and other parts, and AI data centers are eating up supply, so getting production out of China makes sense for everyone.
The timing matters because next-gen consoles are coming, and keeping prices reasonable is basically the whole point of choosing a console over a gaming PC. If systems get stupid expensive, that advantage disappears completely.
Luxshare-ICT also plans a Vietnamese factory cranking out 4.5 million consoles annually starting in 2026, though nobody knows which brand yet. Trade wars keep jacking up prices for RAM and other parts, and AI data centers are eating up supply, so getting production out of China makes sense for everyone.
The timing matters because next-gen consoles are coming, and keeping prices reasonable is basically the whole point of choosing a console over a gaming PC. If systems get stupid expensive, that advantage disappears completely.