Wistron, the Taiwanese device manufacturer currently producing Xbox 360 units for Microsoft, is likely to halt production of the console during 2008, according to a report in the Economic Daily News.
The company is likely to discontinue manufacturing of the console due to the decline in profits and because Microsoft has partnered with rival manufacturer Celistica, reports DigiTimes.
Production of the Xbox 360 currently accounts for around 10 per cent of Wistron's business and it is thought halting production will not have any serious impact on the company.
Wistron is expected to record revenues of TWD 280 billion (EUR 6.34 billion) in 2007.
As well as Wistron and Celistica, Singapore-based Flextronics also manufactures the Xbox 360 for Microsoft.
Microsoft was unavailable for comment at the time of writing.