Microsoft forms joint venture with China-based BesTV to bring games to China

Microsoft is teaming up with Shanghai-based BesTV New Media to form an entertainment-based joint venture. According to Xinhua , BesTV revealed that it will hold a 51 percent share and Microsoft will have a 49 percent share in the joint venture, which is currently named E-Home Entertainment Development. The company formed through the joint venture will develop games and related services.

The venture’s board chairman will be picked by BesTV. The CEO, on the other hand, will be picked by Microsoft. Both the companies will invest around $237 million. Some reports in the Chinese media, which are currently unconfirmed, state that the venture will be developing a new gaming console for China. The console, named Bestpad, is rumoured to be based on the same technology used in the Xbox One.

This brings the Xbox One a step closer to China

This is undoubtedly a big win for Microsoft. China’s traditionally closed market bars any console-maker from stepping into the markets with their consoles, which not only stems the sale of consoles, but also the console game development scene of the country. The venture is expected to be based in the newly-established free trade zone in Shanghai.

The move gives Microsoft quite a lead over Sony in getting its games and related licenses into China. Currently, it is worth noting that Microsoft hasn’t revealed any plans to release its upcoming next-gen console—the Xbox One—in China.

The initial wave of Xbox One for the first few countries is going to hit stores on November 25, which puts it in the middle of the PlayStation 4’s North American launch date of November 15 and European launch date of November 29.