PC manufacturer Lenovo is reportedly developing a console known as the eBox exclusively for the Chinese market.
Considered the fourth biggest PC-maker in the world, Lenovo has created a spin-off company to develop and market the new machine, as part of an ongoing plan to expand its remit.
Beijing eedoo Technology currently comprises 40 Lenovo software engineers, according to newspaper China Daily (as reported by Reuters), and is funded by investment from parent firm Legend Holdings and its private equity sister company.
Technology blog Engadget reported rumours earlier this month that the eBox is designed to ape the Xbox 360, and will include Kinect-esque motion control. The site also purported a 2011 release.
The Chinese market is traditionally denied consoles due to both rampant piracy and government concerns about gaming's effect on youth.
While knock-offs and black market sales abound, the current generation of consoles is not officially available in mainland China.
Earlier this month, Microsoft confirmed it still hopes to secure a sanctioned released of the Xbox 360.