The Microsoft Xbox has never been a device that was entirely popular around the international community. For the most part, high sales have been isolated to the United States and other English-speaking countries. However, it appears that Microsoft is interested in teaming up with Chinese companies to help their devices and products to become more popular within China.
Now, the company has formed a joint agreement with BesTV. BesTV is a media company that is based in Shanghai, and is going to be offering console games and streaming services to all of China. As of right now, the name of the joint venture that has been released is E-Home Entertainment. They will be working together to develop games and media services, according to reports from Xinhua. BesTV is the leading Internet and television provider throughout China, and also has been a leading manufacturer of smart TVs throughout the region.
Over the course of the past 13 years, game console sales have been banned in Shanghai. This agreement follows the lifting of the ban, with a few stipulations, including the fact that companies that manufacture consoles will only operate within the Shanghai free-trade zone. With the new market opening up, it is clear that Microsoft is looking to take advantage of the opportunity and hopes to grow their fortunes internationally, growing their popular game console.
The new venture will also have a CEO appointed, and BesTV will appoint the board chairman. The investment of the two companies is going to total more than $200 million dollars, representing a significant investment for both Microsoft and BesTV. It will be interesting to see if this newest agreement allows Microsoft to tap into a new region, and grow the following that Microsoft has internationally, building on what they have already been able to capture.