Microsoft Corporation (NASDAQ:MSFT) announced that in partnership with BesTV New Media Co., a subsidiary of Shanghai Media Group, Xbox One will launch in China market in September of this year.

Microsoft said that the all-in-one the entertainment system will be the first of its like to launch in China. developers in China will be able to contribute their creative content in China and else where. The system will offer games, entertainment, education and fitness experiences.

Microsoft also said that this was a major step for both Microsoft and BesTV after forming their partnership joint venture E-Home Entertainment Development Company Ltd. in September 2013. This allowed E-Home Entertainment to become the first company to get registered in the Shanghai Free Trade Zone (SFTZ).

“Launching Xbox One in China is a significant milestone for us and for the industry, and it’s a step forward in our vision to deliver the best games and entertainment experiences to more fans around the world,” said Yusuf Mehdi, corporate vice president, marketing and strategy, Devices and Studios, Microsoft. “BesTV has a rich history of delivering innovative entertainment content. It is the ideal partner with which to bring the Xbox business to China.”

China is a huge market for games and entertainment, with an estimated half a billion people play games in China, this makes it a bigger market than North America. More than $13 billion were generated from the gaming industry last year and that only from PC, mobile and online gaming. The Shanghai Free Trade Zone opens an important door for Xbox One to bring the next generation of gaming to Chinese game players.

“I congratulate BesTV and Microsoft on their joint announcement that the home entertainment system Xbox One will be available in China this September,” said Zhu Yonglei, director of the Shanghai Municipal Press Office. “This is a major achievement for the Shanghai Free Trade Zone, and the collaboration between these two leading brands will bring an unprecedented entertainment experience to consumers in China.”

This is definitely a major milestone for Microsoft Corporation in the direction of its global expansion into new markets.