China Telecom gains Xbox One exclusivity

China Telecom will be the exclusive carrier of Microsoft Corp's video game console Xbox One, the first of its kind to launch in the Chinese mainland this autumn, the Chinese operator announced on Thursday.

The console will be sold in China Telecom's sales outlets from September, the state-owned telecom firm announced at a press conference.

[mrpsychoticstalker]

I'm glad to see how the Chinese are embracing video game consoles after their ban was lifted.

I think Microsoft has a successful future with their Xbox One over there. Not only with their games but their features.

[BlackTar187]

China is gonna ban all the features lol

[slasaru01]

They will have their own

[3-4-5]

I thought they already have the Playtendo Box We 4 ?

[MeliMel]

Great deal for MS for sure. Lets hope everything works out for them in China.

[lawgone]

I'm confused by the article. It says the 14 year ban was on foreign invested companies "making" consoles there. Could they still sell them there?

Do Sony and Nintendo sell there?

[SolidDuck]

Sony and Nintendo are not from china so I'm not sure what your asking. The ban has been lifted.

[dcbronco]

I believe Sony will be selling there. Not sure about Nintendo. But the seeming government support for Microsoft is a little scary for other console makers. China may be slowly opening up, but the government obviously has a huge amount of influence over what does and doesn't succeed. The Chinese middleclass is larger than the entire U.S. population. And they are hungry for Western culture. Microsoft's early relationship with the Chinese government might have just turned into a huge payoff. The fact that it's a telecom could also mean better Live support and Azure making it's way there also. I have a feeling Net Neutrality doesn't exist in China.

[Muadiib]

Nintendo are making a console exclusively for China.

[rainslacker]

Except China doesn't have a huge co-operation with MS. The country's government is officially moving over to Linux for all it's OS needs. Has been for years. They have made active strides to distance their computer dependency on Windows and Office.

China Telecom is a state owned corporation. Being the exclusive retailer of the Xbox isn't necessarily a good thing, as it means the government can control it's distribution and pricing of the system. Imagine how it was with Apple and AT&T in the states for the longest time.

[dcbronco]

@rainslacker,

You seem to be ignoring that the Chinese government will control everything anyway. At least if they are on your side most likely they will see to it that your product has fewer problems. It's like having the Mob running the docks at a major port. As long as you keep them happy they will see to it you have no issues. Sony and Nintendo have to keep them happy and won't be giving them as much money. It's in the Chinese government's interest to see things go smoothly for Microsoft. And if there are fears of corruption, Microsoft has the biggest baddest mobster watching their back.

[dcbronco]

@Rainslacker

The Chinese government doesn't seem to have a relationship with Microsoft. But given the news that Microsoft is being investigated for anti -trust for Windows we will get to see if they do or not. Since they seem to own 95% of the OS market in China, this seems like a easy case. But if nothing comes of it but an insignificant fine and Sony runs into supply and other issues, then the relationship is stronger than it appears on the surface.

[Eonjay]

To me, it seems like China is not allowing companies to sell on their own, only through other Chinese companies.

[truefan1]

Great start for the XBOX in China. MSFT has already secured some guaranteed money. I hope the fact that China Telecom wants to be exclusive distributor means they expect some good demand for the XB1. This could also be a factor of ease for MSFT partnering with 2 large companies.

Regardless of how big mobile or pc gaming may be, I think home consoles will do well for the simple fact that when you can't have something legally for 14 years, then it finally becomes available, people will want that product.

[dcbronco]

I doubt Microsoft received anything in this deal. In fact, I would bet they had to pay. Governments don't pay you to introduce you to their market. It's an advantage for you to have them in a closed society.

[rainslacker]

China Telecom is a state owned corporation in China. That means the government can control the distribution and pricing of the Xbox One console. There is really no reason for them to push or compete to sell the console at all. I don't know how that is a good thing.

I don't know about you, but I can't see how a communistic country controlling the distribution and sale of any consumer product such as this being a good thing for the success of that product. The government has absolutely no reason to care if the system sells or not. They get their supply, and make money regardless. The consumer gets screwed because they have no choice on where to get the system. Think of how in some western countries over the past few months we've seen sales and bundle specials to move product. Absolutely no reason to do that for a company such as China Telecom. None.

I don't say this as a Sony fan, but as a consumer. Generally, competition in the market is much more beneficial to the consumer.

This is a bad thing for gaming making big inroads in China. This is particularly true if Sony has to sell exclusively through the same company, as it means the gaming is now controlled heavily by the government.

[dcbronco]

Sony is selling through a different company. But I think you're a little behind on your Chinese news. There are more and more zones in China that are capitalistic. China has one of the fastest growing middleclass sections in the world and already has more middleclass than the U.S. has people. A growing number of the richest people in the world are Chinese in women. I believe they are now the second largest economy only behind the US. And will pass us eventually. The government may be socially communist, but they are definitely fiscally capitalist.

[rainslacker]

China has long been a capitalistic country, but it's government and society is still communistic. It is possible to be both oddly enough despite it being against the principal tenants of communism.

China telecom is a state owned company, which makes it run by the communistic government. It's not to say that they won't try to compete, but there is no reason for them to since the principals of communism are based on shared wealth, although that's not necessarily always how it works.

That's why this kind of news doesn't generally excite me. I can only speculate however since I'm not super familiar with the company, but that's just based on my own observations over the years sprinkled with a bit of hyperbole.

Otherwise, you are right, it is one of the fastest growing economies in the world. The X1 being available is a great start, I'm just skeptical about an exclusive deal as it doesn't lead to much competition like you would see elsewhere where retailers themselves compete.

[Clogmaster]

So it can only be bought in select stores?

Doesn't that limit distribution?

[TheCaptainKuchiki]

Exactly, that's a very bad strategy for Microsoft. Phones aren't even sold like that anymore. China is huge. It's better to make the product available everywhere. But I suppose that the deal includes some kind of promotion of the XBO by China Telecom.

[DafunkyRebel]

Uh Oh that game you developing don't look too government friendly so we're gonna ban it. And we'll also throw you prison-China

[jnemesh]

Be interesting to see how it does, considering that the Chinese will ban most of their games. No COD, no Halo...anything with excessive violence is a no-go in China. They WILL have some locally produced games available, but the big tentpole franchises will be absent. My guess is that it's going to go over like a lead balloon. Remember, people that REALLY want an Xbox in China already have one...they just buy it on the black market.