Microsoft has announced their plans to release the Xbox One to China this September. This wouldn't be big news, expect for the fact that this is the first time a mainstream console has been released in the country in 14 years.
In 2000 a console ban was originally put in place to protect the youth of China from the harmful effects of video games, as ludicrous as that sounds. The point has become moot with the prevalance and popularity of PC and mobile games, not to mention the rampant piracy, and now that the ban has been lifted consoles are getting official launches in what's basically a new market.
For this venture Microsoft has has partnered up with BesTV New Media Co., a subsidiary of Shanghai Media Group, and formed a joint venture called E-Home Entertainment which will invest "in an innovation program that will enable creators and developers to build, publish and sell their games on Xbox One in China and in other markets".
For now, the Xbox one will be the only next-gen console offered in the country, but plans are in the works for other to launch as well.
While they seem confident about their success they have to be a little worried about the piracy in the country. There isn't so much a problem with piracy in China as there is a major industry. There are entire stores devoted to pirated movies and games and the lack of any gaming publishers even trying to legitimately sell their products means that gamers who have legal consoles- brought in from other countries- don't buy legal games. The PS3, which is harder to pirate than the others, is the least popular of the new consoles for this very reason. But Microsoft has reasons to be optimistic.
"The culture of games and entertainment is rapidly growing in China, with nearly half a billion people playing games - roughly a third of the country's population and more than the entire population of North America," said Corporate Vice President of Marketing, Strategy and Business Yusuf Mehdi. "The gaming industry saw massive growth in the last year - generating more than $13 billion in 2013, an increase of 38% in the last year alone. Gamers in China have shown they love gaming - mostly on PC, mobile and online - and game developers in China have been delivering innovative games for years. Creators and gamers alike have eagerly awaited a new generation of entertainment experiences in China."
That's certainly true in the film industry right now, which is sees Hollywood films shooting in China and catering their films specifically for Chinese audiences, since it's now the second-largest film market in the world. The gaming industry is undoubtedly hoping the same will happen for them, that this huge untapped market will suddenly emerge.
It will be fascinating to see how the Xbox One does- we'll see come its launch in September! Good luck, Microsoft.
