Microsoft manufactures its Xbox 360 console in Brazil

Microsoft announced that its Xbox 360 videogame console will be produced in Brazil with the purpose of reducing about 40% its price as compared with imported models. Among its several functions, this device enables users to have access to OTT services, such as Netflix, which has been present in Brazil and Latin America since this month.

Guilherme Camargo, Microsoft Brazil Game Division Director, informed that production has already started; therefore, the first Brazilian devices - fitted with some imported components - will be available as from next October 5.

This initiative will enable the company to reduce its 4Gb memory model price from USD 720 to USD 443. In turn, 250 Gb console price will be reduced from USD 886 to USD 610. Devices are produced by the company Flextronics in the free zone of Manaus. The new headquarters rely on capacity to produce 17,000 units per week, but such number may be tripled according to the demand.

In the United States, videogame consoles are the most utilized devices for VOD through streaming service access. In Latin America, Netflix is available through Nintendo Wii and Sony PS3 devices, among others, but Xbox will soon reach the market, according to what Netflix CEO Reed Hastings confirmed during the launching of its service in Latin America. Last June, there were rumors about Xbox 360's turning into an STB for Telefónica's IPTV service in Spain, though no further details have been disclosed in this regard.

In turn, Steve Ballmer, Microsoft General Director, has recently announced that the Xbox Live TV platform, thought for those devices, will be available for Christmas in the United States. The executive mentioned that the company was negotiating with hundreds of content providers, though he did not disclose further details in this regard.