In January 2014 China lifted its 14 year old ban on games consoles. The ban was prompted by the apparent negative effect of games on young people. Despite the rapid growth of the gaming industry in China, Microsoft, Sony and Nintendo have missed out since the turn of the century. Microsoft has become the first foreign company to sell consoles in the country, with its Xbox One (released in the EU in November, 2013).
Microsoft will be launching the console in cahoots with BesTV New Media Co (a subsidiary of Shanghai Media Group). Up until Micosoft’s massive announcement, China’s gaming sector had been dominated by PCs and mobiles. The tides may well be changing.
Yusuf Mehdi, corporate vice-president at Microsoft, has stated:
‘Launching Xbox One in China is a significant milestone for us and for the industry.’ (BBC News, 30th April 2014)
Where one company goes, others are sure to follow.
For more on growth strategies, check out IMI’s case study, Developing growth strategies to become a market leader and careers guide.