The primary reason Microsoft focused so heavily on media entertainment wasn't to win the living room, but China.  With China's policy against gaming consoles, pushing the Xbox One as a media/communications hub will allow it to more easily gain access to that market.

With access to China's 1.3 billion people, it'll give Microsoft access to the largest consumer market in the world.  Because of this, Sony will not only answer Microsoft, but follow them.   

lol, no. china doesn't play fair and won't let xbone or ps4 in regardless.

Although if Xbone does get popular enough, you might see a device that is actually called Xbone released in China.

The xbone and ps4 will be too expensive for 80% of the chinese population and Kinect will most likely not work there for years the same for all those xbox tv apps

No.....wait.

This might actually work. Give the rights to spy on the Chinese people through Kinect to the government there. (China will get rid of the ban or something for this then)

You now have access to a huge market and will deter the rampant piracy that goes on in China.

The problem is, is China worth the rest of the world? And I can't imagine that they have good enough online for this.

That's actually a pretty good theory. In fact, it seems legit. I don't know what to say, this thread caught me off guard. You're a genius.

I think you may be on to something. Especially, the daily check in on the net is going to make it really hard to hack/pirate.

A TV box that is hard to pirate that also plays games! You are one smart little chipmunk.

(My problem is I don't have or want a cable box. I don't think it includes a tuner, so not sure if I can use the TV Features. (Although, I think the cable company will give me one if I want. I just don't want.))

Oh I see. So that's where the 1 billion figure is coming from. Every Chinese citizen will buy the console.

No, but I'm assuming they're considering the expansion into the Chinese market as factoring in those sales.  India as well, but to a smaller extent. 

China, why wouldn't it work there?  There are over 6500 channels in the US between digital, non-digital over-the-air, and cable channels.  There are approximately 3,000 in China.  I think if Microsoft can figure out the US, it can figure out China.