Microsoft in China: Joint Venture Coming

Microsoft in China: When you think about Microsoft Corporation (NASDAQ:MSFT) and its worldwide reach, many markets come to mind. China may not be one of them, however, the company is looking to change this in the near future.

It appears that Microsoft has found a way to push its Xbox business into China, one of the largest markets in the world. As you can imagine, this would be in the company’s best interest, especially if it has any plans of growing other areas of its business in this region.

Microsoft has formed a partnership with a Chinese Media company as a means of developing entertainment products, such as the Xbox. This would give the company the chance to market its Xbox, among other products and services, to the millions upon millions of interested consumers in this part of the world.

According to the Seattle Times, Microsoft is joining forces with Shanghai-based BesTV New Media. The two companies are going to refer to the new venture as “E-Home Entertainment Development.”

The name may not be as straight forward as “Microsoft China” or something of the sort, but it does give the company a chance to become a major player in this region.

All this is being made possible because China is preparing to halt its ban on foreign video game hardware, hoping to increase activity in its local market that has lagged behind for many years.

In the same piece by the Seattle Times, Xbox spokesman David Dennis added, “We can confirm Microsoft is working with BesTV, a subsidiary of the Shanghai Media Group (SMG), to explore new opportunities in Shanghai and China. We believe there is great market potential and partnership opportunities here and look forward to sharing more details soon.”

Microsoft China has a nice ring to it. This could be the first step in helping the company become the leader in the gaming market in a region that could really help increase sales and profits.

In the past, MSFT has formed partnerships with similar companies, in Latin America and Europe. The company has experience with this type of arrangement, and the Chinese market is ripe for the picking. This is definitely a story worth watching.

These hedge fund managers like the fact that Microsoft is doing whatever it can to dive into additional markets: William Duhamel, James Litinsky, Jeffrey Ubben, Kelly Cardwell, and Sandy Nairn. Check back here for more updates on Microsoft in China.

What do you think about this joint venture?

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Disclosure: none