NEW YORK (TheStreet) -- Microsoft (MSFT) has won a huge battle in the video game console marketing wars, as China Telecom (CHA) announced it has completed an exclusive carrier deal to begin selling new Xbox One devices in September.
Microsoft stock was gaining 0.09% to $44.44 in early afternoon trading in New York.
According to China's Xinhua news the deal involves Microsoft investing $80 million to begin manufacturing the devices in that country China Telecom plans to sell the console in its retail stores starting in the fall. The devices will be manufactured in Shanghai's free trade zone by Internet TV set-top box maker BesTV. The company's CEO, Tao Mingcheng said the new Xbox will target family users in the "mid- to high-end market" and will be a "popular, mainstream product."
Microsoft proudly boasted about the deal with BesTV in April, calling it "monumental" on its Xbox blog.
Lewis Ward, IDC's Research Director of Gaming says Microsoft now appears to be better positioned to take advantage of this big, new opportunity. Reached by phone, Ward said Microsoft understands the Chinese market because of its a long history - since the 1990's - of dealing with its popular Windows operating system there. He thinks the Xbox One has the potential of a providing Microsoft with a big "leg-up" on its Japanese competition.