This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

First Legal Xbox Sales Test Maturity of Game-Savvy China

Stocks in this article: MSFTNTDOYSNE

TAIPEI (TheStreet) -- Microsoft (MSFT) has scored a landmark license to sell the Xbox One game console in China, where several million machines are expected to move in the first quarter or so. Stage two: More difficult.

China's nod to its first legally available gaming console such as the Xbox effectively lifts a 14-year-old ban on the high-end electronic toys. The country had prohibited the sales of most consoles to protect the mental health of young people, who may otherwise find the deliciously violent game content addles their attention to what Beijing cares about -- mastery of hard sciences and socialist ideology.

But Chinese gamers had already learned to order foreign-made console illegally on local e-commerce sites, says Gu Haoyi, game market senior analyst with the consultancy Analysys International in Beijing. A lot are content playing on PCs and smartphones instead. Is the game for consoles over before it starts?

United Results Impress Wall Street; Pilots Are Doubtful

Microsoft has cozied up to China since last year with an out-of-the-way research and development center, and Shanghai-based manufacturer BesTV New Media said in April that it will bring Xbox One to China in September. Microsoft got an elusive China Compulsory Certification from the government, valid until 2019, the official China Daily newspaper said on its website.

Any measure of success will beckon rival game console makers such as Sony (SNE) and Nintendo (NTDOY), which had also been blocked from selling in China, the paper noted. Chinese developers may start to make their own consoles, Gu said, though so far the Xbox One is peerless in China.

Microsoft sold 7.4 million Xbox consoles to retailers in the fourth quarter last year, including 3.9 million Xbox One consoles.

An old hand at forming partnerships in China, Microsoft will take Xbox One pre-orders through popular Chinese Internet icon Tencent Holdings (TCTZF) and online retailer JD.com, China Daily noted.

The console stands to rack up a high score in China given the 1.3 billion population country's fast-growing $13 billion gaming market. Several million Xbox Ones will sell in China during the product's first few months, Analysys International predicts.

Still, Microsoft's license, comfort level in China and pre-order channels do not necessarily mean that Xbox will win the console sales game.

With Activist Investors Still on the Warpath, Apache Is Still Priced Too Low

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs