Xbox One to be the first game console sold in China in 14 years, but the PS4 still rules the West

In an exciting move that could turn the console war back in its favor, Microsoft’s Xbox One will soon become the first major game console to be sold in China since they were banned in 2000 due to concerns they melt the brains of children. The ban was finally lifted at the end of 2013, but only for consoles produced in Shanghai’s new free trade zone. It would seem that Microsoft is the first big console maker to set up a production line there, with a target domestic release date of September 2014. In case you weren’t aware, China is now the biggest market in the world for consumer electronics — if the Xbox One is a success there, it could easily pull ahead of Sony’s PlayStation 4


Way back in 2000, China banned game consoles that weren’t made by Chinese companies (i.e. all of the major ones). This was ostensibly due to a parental outcry over consoles affecting the productivity and mental well-being of their kids. In reality, it was probably just to keep foreign countries (and culture) out, which China is rather fond of doing. In September 2013, Microsoft announced that it had invested $240 million in a joint venture with BesTV, a domestic technology company — and almost simultaneously China dropped the console ban. To be fair, China might still be concerned about the effects of game consoles on children, but it would seem those those fears, in a pinch, can be assuaged by oodles of money.

China is the most populous country in the world, the largest market for consumer electronics in the world (as of 2013/2014), and according to Microsoft’s Yusuf Mehdi there’s “over a half a billion gamers.” BesTV, explaining why it chose to partner with Microsoft, says that the Xbox One is the “most amazing family friendly entertainment product in the world.” All of these factors, in short, could result in millions and millions of additional Xbox One sales — and thus the closing of the widening gap between it and the PS4.

Despite being illegal, you can still buy gray market consoles in China [Image credit: Kotaku]

I think the reality of the situation is a little more complex, though, especially for Western gamers (i.e. the Xbox One’s core market). International consoles, despite being banned for the last 14 years, have always been available through the gray market. In fact, despite the ban, there are plenty of stores — in bright, public places — that sell consoles and games that have been imported from Hong Kong and Taiwan, where the ban doesn’t exist (or isn’t enforced). The domestic production of Xbox Ones will probably increase sales by some margin (gray market imports are expensive), but I don’t know if we’re talking about millions of additional units here.

The thornier issue is the matter of local, domestic games. With the Xbox One now being legally recognized in China, Microsoft and BesTV will be working hard to get local developers to produce games that are specifically targeted at the Chinese audience. This is obviously great for Chinese gamers, but it’s either neutral or negative for Western gamers depending on your point of view. The reason the PS4′s sales advantage is so significant is because it will govern which console is the primary development target for next-gen games: If the PS4 has 50% more Western users than the Xbox One, then the PS4 will get all of the best Western games. Even if China puts the Xbox One way ahead of the PS4 in terms of total sales, it won’t suddenly mean that Xbox One owners in the West get special treatment.