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Xbox One sales in China already top Japan

By James Brightman

Xbox One sales in China already top Japan

Mon 06 Oct 2014 2:43pm GMT / 10:43am EDT / 7:43am PDT
Emerging MarketsHardware

Over 100,000 units sold during its first week on sale, according to Chinese media

Microsoft launched the Xbox One in China, the first video game console there in 14 years, on September 29, only two days before the "golden week holiday." Considering it's the first console to be sold since the ban, it's hard to judge performance, but Chinese news site 17173.com (via Kotaku) has reported that Xbox One did sell more than 100,000 units during its first week in China. To compare that to another Asian territory, Xbox One could only sell about 30,000 units during its first month in Japan.

Our own Rob Fahey believes that Xbox has problems outside of any Anglo-American markets, but if Microsoft is able to continue racking up sales in China, that theory may be disproved. Zhang and Shanghai Media Group, the parent company of Microsoft's China partner BesTV, noted that the goal is to sell over 1 million Xbox One consoles in China within a year.

Time will tell just how successful Microsoft will be in China, but the company certainly has its share of skeptics. Developer American McGee, who's based in Shanghai, proclaimed back in May that Xbox One would fail in China. He noted that the impact of piracy is massive and that most gamers get their entertainment fix on mobile and PC in the country.

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9 Comments

Jordan Lund Columnist

122 257 2.1
Japan hasn't been relevant for the gaming industry in YEARS.

Take a look at the current numbers:

Globally, games were a 70.4 billion dollar industry in 2013:

http://www.newzoo.com/infographics/global-games-market-report-infographics/

Japan? 10.8 billion and 1/2 of that was smart phones.

http://venturebeat.com/2014/03/31/japans-gaming-industry-generated-10-8b-in-2013-half-of-that-was-from-smartphones/

So out of gaming as whole, Japan makes up 15.3% of the gaming marketplace. 1/2 of that is mobile devices. So the console market there is TINY compared to the rest of the world.

Posted:A year ago

#1

Paul Jace Merchandiser

1,193 2,031 1.7
This is great news for both Microsoft and the Chinese video game marketplace. It also means that going forward, Japanese Xbox One sales(or lack of) will matter even less than they do now. What we'll probably see, if sales continue to be strong in China, is that Microsoft will use whatever marketing/advertising dollars they decided not to waste on the Japanese marketplace applied to the Chinese marketplace, especially since they now know the system will sell atleast moderately successful there.

Edited 1 times. Last edit by Paul Jace on 7th October 2014 12:29am

Posted:A year ago

#2

Jeff Kleist Writer, Marketing, Licensing

770 521 0.7
I've been predicting this for the last year. The combination of a strong local partner who has the existing relationships and their.....political donations paid up, pre-existent content licenses, and the other things that are complex and expensive to acquire, and you'll move product. Microsoft has a strong presence in China already, and they will continue to move consoles, especially if they port Office, and do other things to offer the One as an affordable PC, something the SmartTV has become already in Chinese society. They already have Roku style streaming boxes that are running on Microsoft's backbone, and more is likely to come. Sony is going to experience an inverse of Japan I think. A product that isn't remarkably different, lacking the services the Chinese customer expects, and more importantly, the deep political connections that grease the wheels enough to gain a decent foothold.

Posted:A year ago

#3

Justin Shuard J - E translator

49 183 3.7
Not really sure why these are amazing sales figures to be honest. Sure they are three times the amount of Japan's, but considering China has 10 times the population 100K seems a little disappointing if anything.

Posted:A year ago

#4

Jeff Kleist Writer, Marketing, Licensing

770 521 0.7
Well, I'd say that 100k sounds like a round figure of launch units, and considering the slave wages that most of the country makes, combined with poor availability outside the usual urban centers, not such a bad start. There isn't a metric yet to measure performance against that's valid for China like we have for Japan. There will be one a year from now, but $500 can represent a few months salary for a large percentage of the population. While th people who can afford it are certainly not insignificant, we need to see how many of them are prepared to buy this console.

I think the most interesting part of all this is going to be seeing what happens when the X11 is eventually hacked to play pirated games, and the likely hardcore crackdown tha will follow. I also suspect that Microsoft will have built in mechanisms that let them fix these problems with patches, and preventing future games from running, as Sony would likely have done the same.

Posted:A year ago

#5

Jim Burns Research Asisstant

49 85 1.7
"Our own Rob Fahey believes that Xbox has problems outside of any Anglo-American markets, but if Microsoft is able to continue racking up sales in China, that theory may be disproved"

100k at a LAUNCH is EXTREMELY poor and really proves robs point. Sales decrease after launch, not increase, especially when you do not have software which X1 does not have

Edited 1 times. Last edit by Jim Burns on 7th October 2014 7:53pm

Posted:A year ago

#6

Jim Burns Research Asisstant

49 85 1.7
@Jordan Lund
Japan is not relevant? Sorry, that is not true.

Edited 1 times. Last edit by Jim Burns on 7th October 2014 7:54pm

Posted:A year ago

#7

Paul Jace Merchandiser

1,193 2,031 1.7
@Jim Burns
Sales decrease after launch, not increase,
Thats not always true, atleast not for popular in demand systems. The 360 and Wii both continued to sell well past their launches and if you want to talk specific numbers both systems have easily outsold their launch numbers during the past few holiday seasons(Oct-Dec) with the exception being last year and the year before when each of their respective new consoles launched.

As an example the 360 sold 326,000 units during it's launch month of November 2005 in North America(via NPD). The following three Novembers it sold 511,000(2006), 770,000(2007), and 836,000(2008).

Edited 1 times. Last edit by Paul Jace on 7th October 2014 11:22pm

Posted:A year ago

#8

Claas Grimm CRO, Red Hot CG

22 40 1.8
You can buy Xbox and PS4 in China in every mall ever since they came out. The difference now is only that official sales is replacing the grey imports. This being said, moving 100k units is not bad, especially since in the same time frame a lot of grey imports will still have been sold.

Posted:A year ago

#9

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