The ban against foreign game consoles was removed and now Microsoft Corporation (NASDAQ:MSFT) will launch Xbox One in China. The company joined forces with Shanghai’s internet television service BesTV to help further develop the Xbox business in this market.
China lifted the ban
Late last year, China lifted the ban which allowed foreign-funded companies located within the trade zone to sell game consoles. Microsoft, Nintendo, nor did Sony release official statements regarding the life at the time
Although Microsoft Corporation (NASDAQ:MSFT) now has plans to launch Xbox One in China, there is still no word on whether Sony or Nintendo will release their game consoles in that market. And despite the lift, Chinese government officials will still need to check every game before allowing it in the country.
ComputerWorld added, “The Xbox already has some popularity in China. For years, local consumers have bought video game consoles from unofficial dealers at Chinese electronic markets. These grey market dealers specialize in buying consoles from Japan or Hong Kong, and then shipping them to China for sale. In the case of Xbox 360, grey market dealers have been able to reconfigure the system to play pirated games, helping gamers save on costs.”
Microsoft with Xbox One hopes to lead game console market in China
Microsoft Corporation (NASDAQ:MSFT) has already sold over five million Xbox One game consoles in 13 different countries. The company hopes the entertainment box will reach the total of 42 global markets by the launch in China. Microsoft’s latest move in China’s market is a smart one. According to one analyst for Wedbush Securities Michael Pachter, there are about 100 million middle class families in China. About 700 million of the nation’s consumers play games on Tencent’s QQ game network.
Pachter added, “Aside from pricing, the main challenge remains educating a gaming audience that has no entrenched understanding of consoles, especially now that smartphone and tablet gaming is growing so rapidly and driving a local industry shift away from PC games to apps.”