Winstron Corp, the Taiwanese manufacturer announced that will boost its production of XBOX 360 console. They aim to produce 1 million units monthly to meet Microsoft’s request.

Winstron also produces computer products and servers, but their main customer is Microsoft, so they will expand the manufacturing facility for the XBOX 360 in Zhongshan, China.

Winstron’s boosted capacity is another indication that Microsoft is continuing to ramp up production of the Xbox 360, presumably in an attempt to capitalise on its one-year head start on Sony in the next generation console marketplace.

The greatly increased manufacturing capacity for the console will undoubtedly help to ensure that retail channels remain well-stocked over the coming months, but more importantly, may allow Microsoft to stockpile inventory for the holiday season.

All this will lead to a market full of XBOX 360 in the end of the year and almost no PS3.

So PS3 will be short on demand, the buyers will be frustrated and disappointed that they didn’t had a chance to buy a PS3 console while XBOX 360 will benefit from this situation and will probably dominate the market.