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1.) More people in China than USA, Europe, and Japan combined.

2.) The cost of living in a city in China is like the cost of living in Manhattan, Paris or London. While most of the Chinese population are poor there are still tens of million who are very wealthy.

3.) Economoy is at a steady growth. The pace of growth may be declining but China should be able to hold a 5% growth in GDP for many years to come.

4.) Most people did not want to import before because the government is very strict and controlling.

5.) chinese are not afraid to splurge on electronics. More people in China own cell phones than there are people in the USA and Europe combined.

6.) Sony and Nintendo may struggle because they are Japanese companies but Microsoft may be able to sell millions of consoles in years to come in China.

7.) Chinese may favor western games more than Japanese players meaning western games might appeal and persuade Chinese gamers to buy a console.

If countries like Brazil, Poland, Italy, Spain etc. can sell million of consoles China should easily eclipse them. I think Microsoft particularly can even the score with Sony. Sony has Japan but I think Microsoft can take China by the same percentage marketshare.