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Xbox Enters China, Wages War With Playstation 4 -- But Why Is There A Chilly Reception?

Jul 30, 2015 09:55 PM EDT | By Joanna Garado

Xbox enters China after the government has lifted the ban that prohibits gaming consoles from entering the country.

Without the ban that has been around for 15 years, gaming companies like Nintendo, Microsoft and Sony set their sights to a new and giant market.

Aside from Xbox One entering China, game consoles like Wii U and Playstation 4 (PS4) are also flocking to the Asian country.

According to a report by The Wall Street Journal, the Chinese government has been experimenting on lifting the ban for quite some time, even allowing gaming companies to manufacture and sell consoles but with very strict conditions, as long as they are within the Shanghai Free Trade Zone.

This time, however, the test drive is over with the lifting of the ban.

However, gaming giants may find that they wage war not against each other but against their own market.

For years, gaming fans in China had survived off games on mobile devices and PC games with different gameplay and are --- more often than not -- free. With that, gaming companies will find the Chinese market difficult.

This was seen in Xbox One's recent sales and the Chinese consumers' lack of motivation to buy games needed to enjoy the console. The reason? The games and the console itself are too expensive for China.

The premium Xbox One  in China costs 4,299 yuan. This comes with Kinect and the day one deluxe edition. Meanwhile, without Kinect, it costs 3,699 yuan -- a thousand yuan more expensive than it is in other countries.

Xbox in China, along with the PS4 and Wii U need to develop more localized marketing and sales strategy. Some analysts suggest releasing games for free and then charge consumers later if they want to purchase the game.

Despite the chilly reception they received in the Chinese gaming market, on the other hand, Xbox Chief Phil Spencer is hoping that "Halo: The Master Chief Collection" as well as other upcoming games like Foza Motorsport 6 and Tomb Raider will urge Chinese consumers to buy the console.

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