diff --git a/pylib/gyp/__init__.py b/pylib/gyp/__init__.py
index 6790ef96..f44859d1 100755
--- a/pylib/gyp/__init__.py
+++ b/pylib/gyp/__init__.py
@@ -103,6 +103,14 @@ def Load(
     for (key, val) in generator.generator_default_variables.items():
         default_variables.setdefault(key, val)
 
+    output_dir = params["options"].generator_output or params["options"].toplevel_dir
+    if (default_variables['GENERATOR'] == 'ninja'):
+      default_variables.setdefault("PRODUCT_DIR_ABS", os.path.join(output_dir,
+          'out', default_variables['build_type']))
+    else:
+      default_variables.setdefault("PRODUCT_DIR_ABS", os.path.join(output_dir,
+          default_variables['build_type']))
+
     # Give the generator the opportunity to set additional variables based on
     # the params it will receive in the output phase.
     if getattr(generator, "CalculateVariables", None):