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Microsoft Corporation (MSFT) and its Xbox One: Will this Supplier Help Fuel its Success?

The fact that the Microsoft Corporation (NASDAQ:MSFT) Xbox 360 has been the number one gaming console in the United States for many years is no surprise to most people.

Yesterday, we noted that “May marked the 29th consecutive month that Xbox 360 was the best-selling console in the U.S.”

For the current generation gaming console this is great news. The Xbox 360 continues to dominate, and there is not much reason to believe that this would change in the future. Of course, there is one main reason why it will have to change: the Xbox One is on its way.

Steve BallmerIt doesn’t matter if you love or hate what Microsoft Corporation (NASDAQ:MSFT) is doing with the Xbox One. What matters is that this is the direction in which the company is moving, and it is hoping to achieve the same success it has had with the Xbox 360.

Much of this success will be hinged on the suppliers Microsoft decides to do business with. While some of its relationships are going to stay the same, there are sure to be some changes as Xbox One production ramps up.

According to Digitimes and its industry sources, “Winbond Electronics reportedly has landed NOR flash orders for Microsoft’s Xbox One gaming machines, while fellow company Macronix International has seen its NOR flash chips enter the supply chain for Sony’s PlayStation 4.”

This is big news for Microsoft Corporation (NASDAQ:MSFT), investors, and those who are interested in purchased an Xbox One once made available to the public.

The wait is almost over, with the Xbox One set to reach the United States market in November 2013. In the meantime, you can be rest assured that Microsoft has done all it can to setup the right supply chain to ensure success from the start.

Here is more from the same article:

“Sales of Xbox One consoles are expected to reach 9-10 million units in the first year after launch, the sources estimated, noting that Microsoft has announced that it would launch the Xbox One in November at US$499 in the US initially.”

Microsoft Corporation (NASDAQ:MSFT) is hoping for big things with its Xbox One. If it is able to follow in the footsteps of the 360, things will be looking up for the company in the years to come.

The gaming console market has been dominated by MSFT in the past. Whether or not this continues is up in the air, however, it appears that the company is doing everything right with its supply chain. Including a relationship with Winbond Electronics.