Menu
Microsoft eyes China's gaming market with new joint venture

Microsoft eyes China's gaming market with new joint venture

The joint venture will be set up in a new free trade zone in Shanghai

Xboxes and Playstations sold in China's gray market.

Xboxes and Playstations sold in China's gray market.

Microsoft is entering China's gaming market with a new joint venture, the latest sign that its Xbox console soon arrive in the country.

Microsoft established the joint venture with BesTV, a local provider of Internet television services, according to a stock exchange filing the Chinese company made on Tuesday. The venture's core business will focus on "a new generation of family gaming entertainment technology, devices, content, and services."

No mention of the Xbox name was made in the stock exchange filing. But the venture's business scope also includes game development and operating third-party games and entertainment software. In addition, the venture will push a "one cloud multiple screens" technology.

BesTV, a subsidiary of Shanghai Media Group, will have a controlling stake in the venture at 51 percent, while Microsoft holds the remainder. The total investment will reach US$237 million.

Microsoft declined to say what role, if any, its Xbox product would have in the joint venture. But in an email, the company said the deal was made "to explore new opportunities in Shanghai and China."

"We believe there is great market potential and partnership opportunities here and look forward to sharing more details soon," the company said. "This is the first step of many to come for Microsoft and BesTV."

Earlier this year, Microsoft unveiled its upcoming Xbox One console, a product meant to be both a gaming and home entertainment device. It will launch in the U.S. in November.

Many gaming consoles, however, have long been banned in China, as part of government regulations meant to protect children. But despite the official ban, the products have still thrived in the country's gray market, where local merchants often import Xbox 360s and Sony PlayStation 3s bought in Japan.

Microsoft has spent years trying to gain China's permission to sell its gaming console directly in the country, a task that has involved getting approval from various regulators.

The company's joint venture, however, is being established in a new free trade zone located in Shanghai that is meant to attract more foreign investment. Exact regulations of the zone are still unclear, but it could offer more open policies on trade.

The free trade zone will launch on Sept. 29, according to the Chinese state press.


Follow Us

Join the newsletter!

Error: Please check your email address.

Tags business issuesGame platformsMicrosoftXbox360gamesinvestments

Featured

Slideshows

Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP honoured leading partners across the channel at the Partner Awards 2017 in New Zealand, recognising excellence across the entire print and personal systems portfolio.

Meet the top performing HP partners in NZ
Tech industry comes together as Lexel celebrates turning 30

Tech industry comes together as Lexel celebrates turning 30

Leading figures within the technology industry across New Zealand came together to celebrate 30 years of success for Lexel Systems, at a milestone birthday occasion at St Matthews in the City.​

Tech industry comes together as Lexel celebrates turning 30
HP re-imagines education through Auckland event launch

HP re-imagines education through Auckland event launch

HP New Zealand held an inaugural Evolve Education event at Aotea Centre in Auckland, welcoming over 70 principals, teachers and education experts to explore ways of shaping and enhancing learning using technology.

HP re-imagines education through Auckland event launch
Show Comments