Report: Microsoft Entering Chinese Market Through Partnership
Early this year, reports started surfacing that China was set to lift a 13-year ban on the sale of video game consoles. That has happened, and Microsoft is reported set to capitalize.
A report from Xinhua News (by way of Polygon) reveals a partnership worth approximately $237 million between Microsoft and BesTV. The latter is a major media company that sells and distributes televisions and entertainment offerings.
The result is a new company that sees BesTv in control with a slight majority share of 51 percent. The organization will be established in the Shanghai free trade zone.
The product that Microsoft and BesTV design and ship will likely be built upon Xbox technology, but a wholly different device. The Chinese government will need to approve of the technology and the software.
Even with those expenses, this will be a windfall for any company successful in making in-roads. The Chinese population is a vast and largely untapped market, and if there's one thing that companies love, it's new customers.
Provided Microsoft and BesTV can navigate the tricky political waters (likely easier with a Chinese firm in the lead), the resulting revenues should make the effort worthwhile. I'm curious to see what they come up with to woo the fans in China.