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MS Sending Xbox One to China Will “Cost them dearly” says American McGee

"Microsoft recently announced that the Xbox One would see an official release in China this fall. American McGee, a game designer who lives in Shanghai, has shared some insight as to why this is a move that will cost Microsoft quite a bit of money." -PSLS

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playstationlifestyle.net
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MorePowerOfGreen1297d ago ShowReplies(8)
mkis0071297d ago

I noticed a l ot of people seem to think the website means it is a biased article...It is from facebook. American McGee has a facebook and posted this yesterday.

https://www.facebook.com/am...

Jazz41081297d ago

Ms has the money to go into China a see what happens where Sony can't afford the risk. That's the only reason I can see a playstation article trying to come up with reason's for ms to fail in China and money is not one of them.

knifefight1296d ago

Re: "a playstation article trying to come up with reason's"

Proof that you didn't even read it.

StifflerK1297d ago

To a degree yes, BUT , there are many people in China who have been obtaining video game consoles/games illegally (due to the ban) so there clearly is a market.

It might be a niche market - but these people can now buy consoles and games upfront legitimately - that alone might open up the market to those put off by the rules that were in place before.

OrangePowerz1297d ago

Most games will still be illegal because of the content they contain they will still be banned.

HugoDrax1297d ago

Niche market or not, there are 500 million gamers in China alone. If Microsoft has success, then it will be huge.

Magicite1297d ago

there are less than 1,5billion people in china. wana say almost every third is a gamer?

Flutterby1297d ago

Most are pc gold farm companies not console gamers lol

rainslacker1297d ago

It'll really cost any company. But companies have to take risks and invest in things that may not be immediately profitable. While consoles may be in a fledgling state in China, MS is better off losing money now to gain mind-share for long term success. Sometimes looking at the short term benefits costs a lot more in the long run. If say 10 years from now the market shifts and China becomes huge for consoles, MS doesn't want Nintendo or Sony to have a lock on that market.

MS went a couple decades without being really forward thinking in their product line. Now they're playing catch up in markets which are replacing the bulk of their past success...namely the PC market.

iamnsuperman1297d ago (Edited 1297d ago )

I think it depends how they loose money. If it is a large investment for a small to no gain but with no piracy then okay it probably wasn't worth it in hindsight but at the time the investment makes sense because it could be potentially good. If the large investment still means high piracy then the investment is incredibly bad. China (even with a ban) had huge amounts of piracy with video games and video game consoles. China is the last market to hedge bets on (profitably)

rainslacker1297d ago

No doubt. Piracy is rampant over there. I'm sure the Big 3 are well aware of it. However it comes down to the fact that piracy will exist regardless of it's official release. If they can get market-share regardless of piracy, then it's good for them.

I really don't know how well official consoles will fare over in China. It's an interesting time in an untested market, and the piracy issue seems to be something that China doesn't really care about.

I feel for long term success MS, Sony, and Nintendo, would have to tough it out. The chances that the piracy issues have more pressure applied to them is pretty great. I doubt any of them would fare better without larger investment if they wait until the market is prime for console release.

stuna11297d ago

I just don't see the penetration of Xbox1 into the China market as being without its challenges! Which is why I think Microsoft even said that they're only supplying 100,000 units, and that more so to test the waters. The fact that it has been 14 years since legal distribution of consoles in China, I don't see many being aware things have changed! Plus those who have already managed to aquire consoles don't have the issue of jumping through hoops that the legal released consoles will bring. They also were able to aquire these consoles at a significantly cheaper price.

This also doesn't shed any light on the level of support the console will ultimately receive, as well as in what time frame! After all it is a U.S cetric product.

Charybdis1297d ago (Edited 1297d ago )

I think playstationlifestyle and american mcgee are exaggerating. Not saying that entering a new market isn't hard for any company, but apparently there is sufficient demand for consoles for there to be a black market for said consoles.

Microsoft is officially entering the market with a relative small number of x1 consoles and relative high pricing (compared to pricing in other countries),not sure if higher priced but assume it would be cheaper than a import or 'illegal' console. This (small number/ high pricing) makes sense; as I assume the consumer market which has access to a high speed internet connection,a hd television or has enough disposable income (for a xb1/ps4) isn't as big as in 'western countries'.

Getting a foothold in China as a whole will cost Microsoft as they will need to adhere to Chinese policies and regulations. While this is true I think will have at least prepared a business plan for this in which they will profit from it. What I find more interesting is the opportunity this might allow for Chinese developers creating content which may or may not be exclusive to china.

ghostface91297d ago

Phil spencer is already talking to china game makers to get there products on x1 also it doesnt cost them money to partner up with bestv its a joint venture so every console and game they sell is profit

AnteCash1297d ago

And how soon after will x1 ripoffs going to emerge in china...

TheEnigma3131297d ago

I'm sure it's started already. They bootleg everything there.

stuna11297d ago

That's exactly what's going to happen! A large amount of products sold in China are actually reversed engineered from other products and sold at a lower price. There actually are knockoff Xbox's, Ps2 ,PSP's, Ipod's, Ipads, Iphone's etc.

China is actually pretty self sufficient on it own, needing minimum outside intervention or help industy wise.

ghostface91297d ago

ya the reason there knocked off though is because you cant legally get those products there. now that its legal to buy them bootlegging should be minimal. I would do the same if my country wouldnt let in the x1.

Charybdis1297d ago (Edited 1297d ago )

The original xb and the xb360 have been cracked so that could also happen with the xb1. With the previous xb consoles being easy to hack Microsoft might already have some brand recognition with the xb1.

Bootlegging the xb1 however is harder to justify as the console and games receive so many updates and not to even speak of some of the online server functionality/ requirements of some games. Hope for Chinese gamers that Microsoft has some azure servers in their region.

mrpsychoticstalker1297d ago

The Xbox will be a success in China.

Predaking771297d ago

We can do that too...

The PS4 will be a success in China ;)

Jazz41081297d ago

The article should state how Sony could afford China not ms as sony has a lot more baggage and money issues and I don't even see them trying.

Predaking771296d ago

@jazz4188

Sony already confirmed they are working on to launch on China, they just have not announced an specific date.

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