Focuslast year to become a supplier of TV-encoding processors, which convert PC code into signals suitable for display on a TV set. The Campbell, Calif.-based company joined larger Conexant Systems as one of two providers of the chips, a critical but relatively inexpensive and low-profile part of the Xbox.
The move is one of several cost-cutting measures Microsoft has taken to trim production costs for the heavily subsidized Xbox, includingfor units sold outside North America.
Microsoft last week announced that it was, despite fresh evidence that the loss-making division that produces the console was taking a .
Focus said Tuesday it has received an initial production order from Microsoft for its FS454 chip and expects to begin shipping the chips in the third quarter of this year.
Early this year, Focus announced that initial orders from Microsoft had been delayed, raising doubts about whetherfor the Xbox.