Never understood why some people saw the official launch into China as the panacea to XB1's slow sales, people I know who have lived in China (Shanghai) for the past year have an XB1 they bought off the grey market, and talking with them it doesn't sound difficult to get either a XB1 or PS4 over there. The grey market is pretty strong and if you want a console or games, you can get it, and usually much cheaper than the 'official' one.

The Chinese market is a tough nut to crack, and with the Chinese Government tying both of MS's arms behind its back with regulations, I can't see how it can work.

That doesn't necessarily mean that the sales are bad. Sounds to me that company just overstocked in a big way.

If this includes the cost of free games package promo, they may have much less losses or break even.

People, bare in mind, the X1 cost 5k RMB to buy, and the average salary in a big city like Beijing is at 5k/month. Console gaming has no history here (because of reasons already known) so the demand is also low.

I have claimed this for a long time here, they need to release consoles at lower price to make it attractive to the consumers. And a game can not cost 500 RMB, it is insane.

People do buy games, especially for PC, because they cost 1/10 of a console game.

What is the main reason for piracy? Because people are evil and don't want to buy a game or because they can't afford it?

This discussion is too out of hand, and it's too much aggression towards my government. Yes there's a strict policy for foreign companies and games containing strong violence etc. are harder to release here. But this not the main reason for low sales.

Too busy playing the Chintendo Vii

Have there been any games released since launch, anyway?

China's market is really hard to grapple since the average family income is too small to afford for home consoles.. Average consumers would rather have free games downloaded on their phones instead of paying a large amount for one console which you still will have to purchase games from.

compared to how much 100k consoles costs, it's pennies. It's 40m worth of product

But China was supposed to save the One

The obvious reason :
1.There are many people who already bought the product from gray market.
2. Obviously they are waiting the system to be able to play pirated games.
3. Many gamers prefer PC then console.
4. Even there GDP is high, there life style and consumer habit is different.
5.Government regulation etc, made hard for any official product to be released on main land China