It's a good thing Microsoft is rolling in cash, because they've just made announcement of a plan that's going to cost them dearly. Of course no one reporting on this is any wiser to the blunder than Microsoft, so here are my Top 5 reasons why Xbox One will fail in China:

1. Can't sell sand at the beach. Xbox One, PS4 (and all previous generations of consoles) are ALREADY IN CHINA. There is NO effective ban. Go to Taobao (www.taobao.com) and punch in "Xbox One" or "PS4." You will find (as will Chinese consumers) consoles and games available for next-day shipping to your doorstep in China.

2. The set-top box market is ALREADY SATURATED. "Set-top box" is the #1 selling point of the Xbox One in announcements related to the China launch - with BestTV as their local partner. XiaoMi and other local brands already control this business and offer better, cheaper boxes built atop Android-powered dedicated devices. Oh, then there's the fact that 99% of streaming content is consumed on mobile devices or PCs.

3. Piracy. If you've not seen it in China, you've not seen anything. It's massive, awe-inspiring, and will poke giant holes in even the best digital content plans.

4. Cultural/audience disconnect. The target market of kids/young-adults from middle-class/wealthy families don't have free time to spend on console games (or TV/movies). Between the ages of 3~22 years of age they are heads-down with study, school, and extra-curricular activities that will increase their chances of competing successfully against others in the super-hot Chinese job market. Those that aren't studying don't have money to spend on a console.

5. Censorship and restrictions on content. Any console shipped out of the Shanghai FTZ will be unable to play any games other than those approved by the Ministry of Culture (and other media oversight bureaus). That means content for the device will be limited and inferior to what could be had by purchasing a black-market console on Taobao. Chinese consumers are wise to hardware/software restrictions and prefer to purchase "rooted" devices whenever such restrictions are put in place. Back to point #1 and #3.

(I could make more points... Chinese consumers are addicted to mobile phones, gamers get their kicks online, consoles are dead, etc, etc... but there's no stopping a dinosaur. I'll just leave it at 5.)

Here's the slick promotional video from Microsoft and BestTV:
http://www.gamespot.com/videos/xbox-.../2300-6418565/

Hey Sony, you know better than to follow Microsoft into this punji pit, right? Right? Sony?

https://www.facebook.com/americanmcgee

Seen on gaf.

Yeah I never expected consoles to achieve much success in China. Nintendo has been there for a while and it never became a major region for them.

Just why are successful multibilion dollar companies never listening to the people of the internet? If they paid attention they would be rich!!

A wild Xbox kid has appeared!

im 10 and wat r u talking about microsoft is already rich and xbox one is selling and 360 is still not dead and there are to many stupid people on the internet so why would u listen to them?

I remember when I was 10! Man, I really miss the early 1500's...

I have no idea why he is qualified to talk about market situation in China, but to someone like me that has no idea about Chinese people and market situation there, those seem like valid points of concern.
But I'm sure that Microsoft has done extensive research, and are not going into this on blind faith like they did last year under Mattrick.
I also believe that they don't expect to sell millions just based on population, and that they are expecting more to replicate German than UK numbers.

So, even though those points seem to point toward mediocrity or failure, we all will be much wiser come September.

Unnecessary to post 5 - only one needed - nobody gives a shit about consoles in China, it's PC gamer territory to the bone.

I have a chinese friend and any games he wants to get, he gets on pc rather than consoles. Also the games he tends to get are free from a pirate chinese site (dont know which one). I think he generally typifies the chinese in that he cant see why he has to pay so much for a console and more for pricey videogames when he can get them for free. This will no doubt be the attitude of most chinese gamers. Which is not to say that there wont be some gamers willing to pay to play the xbox gamers. Though 100,000 consoles does seem a bit too high sales to me.

I don't get it.

The Xbox kid thing is what a 10-year-old Xbox fanboy would have said.

My profile says I'm 521, so I would be 10 in 1502.

All that is needed for consoles to suceed in China is the next big MMO being exclusive to them, then all chinese gold farmers will buy one...