Microsoft is set to launch the 360 in China in the next few months according to a report today.
The report, which quotes 'industry sources', claims that Microsoft has been talking to local internet service providers since last year. It also plans to appoint sales agents for the console in the mainland.
Microsoft has held off from giving any official comment with regards to a timeframe. Chinese media has reported this as being due to the government's attitude towards game content. Some retailers in cities such as Shanghai have told customers to expect the 360 as soon as mid-February, however.
Microsoft has also been talking to the Chinese government to check that their content will be acceptable. As SPOnG
reported in December, China has been toughening up its monitoring of gaming content recently. Games containing 'inappropriate' religious, political, sexual or violent materiel may be banned. This could prove problematic for Microsoft in selling some current 360 titles.
One source said: "The company has been talking to a wide range of potential sales agents, getting feedback from game testers and experimental users, and doing everything they can with the sole aim of launching Xbox in China as soon as possible."
The 360's primary source of competition will be online PC gaming. The PS2 launched in China three years ago, but due to comparative costs the PC remains the dominant gaming platform, with an estimated 23-million users.
Pricing could prove crucial for Microsoft. Florian Pihs, Assistant Vice President of market research firm, Analysys, says:
"Microsoft has to choose whether to go for better software protection or if they're going to charge more for the Xbox because there are already some grey imports…The reason, however, that they are doing it anyway is because Microsoft wants to develop the Chinese software development community ... they already have teams that have software development for Xbox in China,"
The 360 is facing a tough marketplace, but Microsoft's determination indicates that China is beginning to form a viable market for console gaming.
Source: Reuters