Microsoft Corporation (NASDAQ:MSFT) will soon make available its popular gaming console Xbox One in China, as well. The software giant partnered with Tencent Holdings, who will use its alliance with JD.com Inc, to offer it in China for early advance sales making use of. The Internet conglomerate is facing tough competition from Alibaba Group Holding Ltd, which is a leading electronic-commerce giant, and hopes that it will boost sales for them.
More details soon from Microsoft
Video game consoles were banned in China until 2014 due to its content, which raised serious concerns with regards to the impact it could have on children. These included not just the Xbox, but also Playstation from Sony and Wii from Nintendo Co., as well. Chinese computer shops and stalls have been selling gray-market machines since long, but the gaming consoles haven’t gained much popularity among the gamers, who prefer using computers more for playing games.
At a digital entertainment event starting Thursday in Shanghai, the company will impart more information to the Chinese customers about the Xbox, says a spokeswoman from Microsoft Corporation (NASDAQ:MSFT). The consoles sold by Microsoft in China are said to be manufactured at the Shanghai-based free-trade zone.
Tencent expanding its reach
Tencent’s WeChat and mobile QQ messaging software users can reserve the console days before the company starts taking orders from Chinese users, by depositing 499 Yuan ($81). The users will get the delivery of the consoles in September as informed by Microsoft. While the console costs $500 in the U.S. its price in the Chinese market is not disclosed by Tencent Holdings Ltd. as of now.
While the U.S. based internet companies have tried to gain core competence in few areas, the Chinese companies have spread their focus over many areas, and JD.com is one such company. Tencent wants to gain a larger share of the e-commerce market in China, which at present is dominated by Alibaba.com Limited. For doing this it has even acquired nearly 15% stake of JD.com, which is the second-largest e-commerce player in China. Tencent has a strong presence in messaging service with QQ having 808 million MAUs and WeChat having 355 million MAUs across the world by last year end.