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Saturday, January 07, 2006 

Microsoft moves into action on the shortage of Xbox360s

Microsoft has acted on xbox360 shortages by announcing a third manufacturing partner.

The company faced the passion of frustrated gamers in december as limited supplies of the new console quickly sold out.

Microsoft has now has signed up a third company to make the Xbox 360.Celestica will join Microsoft's existing manufacturing partners Flextronics and Wistron to help meet high demand for the console.

The Xbox360 is the first of a new generation of games consoles.

had signed up a third company to make the Xbox 360.Celestica will join Microsoft's existing manufacturing partners Flextronics and Wistron to help meet high demand for the console.

Microsoft is reported to be on track to ship between 4.5 million and 5.5 million consoles by the end of June. The decision to offer limited free access to its online gaming service, Xbox Live, appears to have paid off. More than 50% of 360s are connected to Live, compared to 10% of the original Xbox.

Although a free subscription does not allow people to play games, they can access the xbox360 Marketplace and download movie trailers, demo games and music.

Microsoft has also announced that it would be releasing a high definition HD DVD external drive for the 360 later this year. The console itself just has a standard DVD player.Microsoft hopes to steal a march of its competitors by being first out of the gate with the Xbox 360.

Sony has said its PlayStation 3 will out in the spring and Nintendo is also planning to release its Revolution this year.