The Xbox One will be the first non-Chinese gaming console to be sold in China in over a decade, since that country banned the sale of video game consoles.
Utilizing the new rules which allow international companies to manufacture devices in the Shanghai Free Trade Zone, Microsoft is partnering with BesTV to bring the new-gen console to Chinese consumers starting on September 23rd, the one-year anniversary of the free trade zone.
“We’re honored that Xbox One is the first console approved for sale in China through the Shanghai Free Trade Zone,” said Yusuf Mehdi, corporate vice-president, marketing, Devices and Studios,
This is good news for Microsoft and Chinese consumers, but there's one tiny detail that needs to be front and center here: the starting model, without Kinect, will cost a Chinese consumer ¥3,699 RMB, or roughly $599.
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The special Day One edition, bundled with Kinect, costs ¥4,299 RMB, or just under $697 US dollars.
This is a lot of money. Significantly more than the $399 Xbox One or the $499 Xbox One with Kinect sold in the US, where consumers are more likely to purchase gaming consoles and have more disposable income.
Of course, there are plenty of well-to-do Chinese consumers, but I wonder how much of an impact the Xbox One can have in China with this sort of pricing---even with half a year of free Xbox Live Gold subscription and other Chinese-focused perks.
The price is likely just the cost of doing business with China, and I can all but guarantee Microsoft would like to be able to sell Xbox One units with lower price-tags, and no doubt
Nintendo already sells the iQue player in China, which it launched in 2003. It plays a handful of N64 ports and retails for about $80. If Nintendo could launch the Wii or Wii U for two or three times that they could almost certainly make a dent in market share.
Software for the Xbox One will range from ¥99 RMB to ¥249 RMB, or about $16 to $40. That's a better deal than the consoles themselves.
The real trick facing game makers in China---where copying everything from games to movies is rampant---will be combating piracy. With launch titles like Neverwinter Online, expect to see lots of free-to-play content on Chinese consoles.
The Xbox One announcement comes in the wake of news that China is investigating Microsoft for violating its anti-monopoly laws. The Chinese government raided four of Microsoft's China-based offices this week. MSFT shares are down slightly today.
You can read more about the Xbox One's Chinese debut at Xbox Wire.