22 What are the roles of transactions costs, economies of scale, economies of scope and economies of team production in the design, manufacture and marketing of the Xbox? Two leading design firms, Astro Studios of San Francisco and Hers Experimental Design Laboratory, Inc. of Osaka, Japan, worked with Microsoft to design the Xbox 360 video game console. IBM, ATI and SiS designed the Xbox 360’s hardware.

Two firms, Flextronics & Wistron and Celestica, manufacture the Xbox 360 at their plants in China and Taiwan.