Microsoft Corp. this week said it will begin to produce Xbox 360 consoles in Brazil.

The company said the local production will cut hardware production cost by 40 percent.

The production is in partnership with Flextronics International Ltd., which currently produces the Xbox 360 hardware in China.

Microsoft expects to manufacture 17,000 units per week in the new facility.

Microsoft in Sept. began sale of the limited edition Xbox 360 320GB Gears of War 3 Bundle at $399.99.

The Xbox 360 Call of Duty: Modern Warfare 3 Bundle, to be sold Nov. 8, will include an Xbox 360 320GB SKU with custom Modern Warfare 3 graphics and sounds, two custom wireless controllers, special Avatar items, Bluetooth Headset, and a copy of Modern Warfare 3 at $399.99.

In 2012 it will sell the Xbox 360 Limited Edition Star Wars Kinect Bundle at $449.99.

Current Xbox 360 stand-alone SKUs include the Xbox 360 250GB hardware at $299.99 and the Xbox 360 4GB hardware at $199.99.

Bundle SKUs include the Xbox 360 250GB Kinect Special Edition Bundle at $399.99 and the Xbox 360 4GB with Kinect bundle at $299.99.

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