It seems that Microsoft just took a swipe at Sony as it became the first major console maker to launch its latest its Xbox One, the eighth generation console in a market that’s considered massively lucrative, i.e. China. Priced at 4, 2999 Yuan, the first of the consoles were sold in the city of Shanghai after the launch of Xbox One in China. Competitors like Nintendo and Sony haven’t launched their products as yet in the country. The Chinese government had finally removed a ban in January that had been previously imposed on consoles, which had been placed 14 years ago over concerns related to content. However, there are still a number of games that will still remain banned in the country.
This includes one of the most highly demanded games, Call of Duty. At the time of the release of Xbox One, there were only 10 games that could be made available. Nevertheless, the software giant has said that 70 more games are in the works and will be launched soon. Microsoft may be able to gain the much-needed sales boost it needs because it has beaten its rivals in entering one of the largest markets of the world. Currently, the Xbox One is being outsold by the PlayStation 4, which is Sony’s product in most of the global markets.
Analysts are of the opinion that there are both plus points and problems that can be associated with entering just any market ahead of competitors. Obviously, there is the huge potential of appealing to customers as there isn’t any competitive product available. But, the big issues include overcoming the dilemma of pricing and piracy and having the right content for connecting with the local market. Microsoft’s competitor, Japanese firm Sony has made business partnerships for launching the PlayStation 4 in China. However, there is no particular date specified for its release as yet.
Both the firms will have to compete with a thriving black market as consoles are illegally imported into the country and are used for playing pirated versions of the games. They will also have to deal with the competition from mobile games, which are quite popular as they aren’t subjected to any bans in the country. As far as the release of the Xbox One is concerned, it was supposed to take place last week, but had been delayed and no reason had been offered by the company as an explanation. Currently, the company is facing an investigation of anti-monopoly concerning its Office software.
Satya Nadella, the chief executive of the firm, visited China in the previous week and said that they would cooperate with the government in its investigation. In order to launch games for the Xbox One in the market, the company will have to negotiate with the regulators who are fans of educational games as opposed to violent ones. However, this could also work in favor of Microsoft, which has recently acquired Minecraft, an online block-building game that has gained immense popularity in the Western market, especially amongst kids. It can be exposed heavily in the Chinese market.